The Fall of Bitcoin’s Reign: Are Altcoins Poised for a Breakthrough?
Critics Debate as Bitcoin's Market Dominance Dips, Sparking Speculations of a Possible Upcoming Altcoin Surge
Key Points
- Bitcoin’s dominance fell below 50% after Trump included altcoins in the U.S. “Crypto Strategic Reserve”.
- Despite Bitcoin’s rally, the market saw increased capital rotation into altcoins.
The crypto market cap experienced a surge of 8%, reclaiming the $3 trillion mark. This was spurred by Bitcoin (BTC) surpassing the $90K mark following Trump’s confirmation of a Bitcoin Strategic Reserve.
However, Bitcoin’s dominance (BTC.D) saw a drop from 55.4% to below 50%. This signifies an increased capital rotation into altcoins. Historically, such declines in BTC.D have been followed by expansions in the altcoin market.
Altcoins Included in U.S. “Crypto Strategic Reserve”
Trump’s announcement that the U.S. “Crypto Strategic Reserve” would include Ripple [XRP], Solana [SOL], and Cardano [ADA] resulted in a sharp rally in these assets. Investors swiftly repositioned their portfolios in response.
However, this inclusion of altcoins was met with criticism. Detractors argued that Bitcoin should be the only asset in a strategic reserve. Trump later clarified on Truth Social that Bitcoin and Ethereum (ETH) would be the core holdings of the reserve.
Market Volatility and Capital Inflows
Despite this clarification, high-cap altcoins experienced significant volatility and capital inflows. BTC surged 9.44%, marking its longest green candlestick since the post-election rally. XRP gained 34.13%, while ADA posted an unprecedented 72.15% single-day increase, reclaiming the $1 level.
However, Bitcoin’s dominance quickly rebounded after its initial decline. At press time, BTC.D stood at 61.44%, as XRP, ADA, SOL, and other high-cap altcoins retraced over 10%. They failed to confirm resistance flips into support on higher timeframes.
Currently, BTC remains above $90K, correcting only 2% from its intraday high. However, a decisive bullish breakout is yet to be confirmed. With profit-taking accelerating in high-cap altcoins, Bitcoin stands to benefit from renewed capital inflows, as reflected in the rising BTC dominance.
The market remained divided after the highly anticipated executive approval of Strategic Reserves. Speculation around the inclusion of altcoins intensified, with analysts debating whether it was a strategic liquidity maneuver or an attempt to influence market structure.
However, BTC remains exposed to volatility and must hold above the $88K support level in the coming days to confirm market strength.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
A decade-long tug-of-war ends: "Crypto Market Structure Bill" sprints to the Senate
At the Blockchain Association Policy Summit, U.S. Senators Gillibrand and Lummis stated that the "Crypto Market Structure Bill" is expected to have its draft released by the end of this week, with revisions and hearings scheduled for next week. The bill aims to establish clear boundaries for digital assets by adopting a classification-based regulatory framework, clearly distinguishing between digital commodities and digital securities, and providing a pathway for exemptions for mature blockchains to ensure that regulation does not stifle technological progress. The bill also requires digital commodity trading platforms to register with the CFTC and establishes a joint advisory committee to prevent regulatory gaps or overlapping oversight. Summary generated by Mars AI. The accuracy and completeness of this summary, generated by the Mars AI model, is still being iteratively updated.
Gold surpasses the $4,310 mark—Is the "bull frenzy" returning?
Boosted by expectations of further easing from the Federal Reserve, gold has risen for four consecutive days. Technical indicators show strong bullish signals, but there remains one more hurdle before reaching a new all-time high.
Trend Research: Why Are We Still Bullish on ETH?
Against the backdrop of relatively accommodative expectations in both China and the US, which suppress asset downside volatility, and with extreme fear and capital sentiment not yet fully recovered, ETH remains in a favorable "buy zone."
Trending news
MoreCrypto prices
More
