Bitcoin’s dominance in the crypto market is trending in a way that feels like déjà vu for seasoned investors.
In past bull runs, Bitcoin’s market share peaked in December before giving way to altcoin rallies.
Could we be on the brink of another “altcoin season” in the coming weeks?
Is Bitcoin Dominance Peaking? What It Could Mean for Altcoin Season
Bitcoin dominance, often shortened to BTC.D by traders, is a simple yet powerful way to measure Bitcoin’s hold over the market.
Imagine the entire crypto market as a $3.3 trillion pie, with Bitcoin’s slice worth $1.94 trillion.
That’s a dominance rate of 57.9%, showing Bitcoin controls more than half of the pie.
Crypto analyst The Wolf of All Streets recently pointed out an interesting trend in this metric.
In past bull runs, Bitcoin’s dominance peaked in December – specifically in 2016 and 2020.
With December just days away, many are wondering if another critical moment in the four-year crypto cycle is about to play out.
According to Wolf of All Streets, these peaks are no coincidence.
He argues that the current frustration among altcoin holders is all part of the pattern – what he calls the “Bitcoin part of the cycle.”
An altcoin rally might be closer than it seems.
How Bitcoin’s Consolidation Often Leads to Explosive Altcoin Gains
When Bitcoin’s dominance peaks, it often creates a chain reaction in the crypto market.
Here’s how it usually goes: After Bitcoin’s big rallies cool down, traders sitting on profits begin eyeing their next move.
And that’s where altcoins come in.
The shift tends to follow a familiar routine.
As Bitcoin enters a consolidation phase, trading sideways or making smaller moves, investors reallocate some of their gains into promising altcoins.
The appeal is simple: Smaller-cap cryptos often offer higher percentage gains than Bitcoin after it’s already had its big run.
This rotation tends to lead to a period where altcoins outperform Bitcoin.
While Bitcoin may keep rising, many altcoins can see explosive growth as new money flows in.
During these market phases, lesser-known projects often take center stage, delivering returns that easily outpace Bitcoin’s.
Analyst Crypto Rover thinks we are on the brink of this phase.
He speculated that Ethereum would break out next, and after that, all altcoins would go “parabolic.”
Top Altcoins to Watch – PEPU, STARS, SOL, & XRP Prepare for the Next Rally
As investors prepare for a potential altcoin season, several projects are gearing up to capitalize.
One to watch is Pepe Unchained (PEPU), which has raised over $40 million in presale.
Pepe Unchained plans to introduce a new Layer-2 network for meme coin traders.
This mix of meme vibes and real utility could help PEPU rally if investors begin to rotate into low-cap altcoins.
Pepe Unchained’s presale will end in 18 days, and after that, the creators intend to list PEPU on an exchange for the first time.
Another coin that could benefit is Crypto All-Stars (STARS).
Crypto All-Stars is developing a new staking app called “MemeVault” that supports 11 top meme coins.
This means meme coin traders can generate passive income on their holdings.
Like Pepe Unchained, Crypto All-Stars is still in presale, yet has raised over $5.7 million ahead of its exchange debut in December.
But it’s not just new coins like PEPU and STARS that could benefit from a shift in the market cycle.
Established altcoins, such as Solana, have already shown their potential this year.
SOL recently hit a new all-time high – and many traders believe it will overtake Ethereum as the world’s second-largest crypto.
XRP also tends to shine during altcoin seasons and could do so again, especially now that Trump is set to take office.
With Gary Gensler stepping down, there’s a chance Ripple’s legal woes could be a thing of the past.
And that would be great news for XRP’s price.
Ultimately, for investors, timing will be crucial.
While Bitcoin’s dominance pattern suggests an altcoin season might be approaching, market cycles don’t always play out the same way every time.
Still, the next few weeks could offer exciting opportunities for those with a high risk tolerance.
