As momentum shifts in the cryptocurrency market, an altcoin season may be approaching. Bitcoin dominance has sharply dropped from over 65% to 63.89%. This occurred when BTC broke through $100,000 for the first time since February 3rd.
This triggered a broad altcoin rally, with Ethereum rising nearly 13%, and major coins like SOL, DOGE, and ADA each rising over 6%. Combined with a rebound from its lowest point since 2020, the ETH/BTC ratio suggests a potential rotation to altcoins for the first time in months.
Altcoin Season Approaching? Bitcoin Market Share Drops... Major Coins Like ETH Surge
Bitcoin dominance sharply dropped from over 65% to 63.89% within hours after BTC broke through $100,000 for the first time since February 3rd.
This change triggered a strong altcoin rally, with Ethereum rising nearly 13% in the past 24 hours, while Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) each rose over 6%.
Until yesterday, Bitcoin dominance was at its highest level since January 2021, showing how aggressively BTC has led the market in recent months.
This sudden reversal signals a capital rotation, indicating traders are beginning to move profits from BTC to altcoins. Recently, Crypto Quant CEO Ju Hyun-young mentioned that the Bitcoin cycle theory has been invalidated by traditional finance.
Adding to this narrative is the ETH/BTC ratio, which recently reached its lowest point since 2020, indicating Ethereum's long-term underperformance compared to Bitcoin.
This rebound from a historical low could signal the start of a structural shift favoring altcoins. If BTC dominance continues to drop and ETH/BTC rises, it strongly suggests the market is transitioning to an altcoin season.
As altcoin trading volume increases and capital rotates to broader sectors, May 2025 could mark the beginning of a major altcoin season.
May 2025: A Turning Point for Altcoins?
The CoinMarketCap Altcoin Season Index jumped from 23 to 36 in the past four days. This index tracks whether Bitcoin or altcoins perform better during a specific period.
Scores below 25 indicate a "Bitcoin season" where BTC outperforms most altcoins. Scores between 25 and 75 are considered neutral, while 75 and above officially signify an "altcoin season".
This jump to the neutral zone occurred after reaching an annual low of 12 in late April, which was the weakest point since peaking at 87 in December.
The CMC Altcoin Season Index measures whether at least 75% of the top 100 coins (excluding stablecoins and asset-backed tokens like WBTC and stETH) have outperformed Bitcoin in the past 90 days.
In 2025 so far, Bitcoin has risen 10% year-to-date, outperforming almost all major altcoins. XRP has risen over 12%. Meanwhile, Ethereum has fallen 30% year-to-date, and coins like LINK, DOGE, AVAX, and SHIB have all dropped over 20%.
Despite this weak year-to-date performance, the sharp drop in BTC dominance, the strong altcoin rally in early May, and the rising altcoin index suggest May 2025 could be the start of a new altcoin season.
