BTC dominance needs to drop below 58% to signal a potential altcoin season, according to QCP Capital analysis.
Bitcoin (BTC) and Ethereum (ETH) traded in a fairly tight range over the past weekend, but Solana (SOL) outperformed, gaining more than 17% since Friday’s low. A report from QCP Capital suggests that this outperformance could signal the start of a broader shift in the market.
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As investors shift profits to smaller-cap cryptocurrencies, altcoin rallies historically typically follow periods of consolidation in BTC and ETH.
BTC Dominance and Pro-Crypto Policies: Altseason on the Horizon?
Currently hovering around 60%, BTC dominance suggests that a drop below 58% would be the tipping point for an altcoin season. This fits with broader patterns whereby large assets and Bitcoin’s liquidity often trigger notable price swings in other coins.
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As CNF reports , recent forecasts from one cryptocurrency specialist indicate gains in altcoins such as Ethereum, Solana and other smaller-cap assets ranging from 50% to 200%.
The expected pro-crypto policies under a Trump administration could serve as a trigger for this shift. Together with the expected rate cuts, these laws could make the environment ideal for altcoins to shine.
Until BTC hits the long-awaited $100,000 mark – a target that no longer seems far away – investors may remain cautious about fully switching to altcoins. Joining the likes of MicroStrategy in supporting institutional adoption, Japanese firm Metaplanet today revealed its intention to buy more BTC with money raised from bond sales.
Strong institutional interest helps BTC show resilience despite net ETF outflows recorded last Thursday and Friday. The political and financial environment, according to QCP Capital, increasingly fits with the possibility of BTC reaching six-figure prices, inspiring hope in the crypto market.
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