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Bitcoin News Update: Bitcoin's Dominance Wanes as Institutional Investors Turn to Altcoins Amid Changing Market Trends

Bitcoin News Update: Bitcoin's Dominance Wanes as Institutional Investors Turn to Altcoins Amid Changing Market Trends

Bitget-RWA2025/11/14 22:58
By:Bitget-RWA

- Bitcoin's market dominance fell to 59.90% in November, signaling potential capital rotation to altcoins as analysts debate an emerging altcoin season. - Mixed signals from the Altcoin Season Index (100 vs. 28) reflect fragmented sentiment, with Solana and XRP attracting $146M in institutional inflows amid Bitcoin outflows. - Technical indicators suggest a "dead cat bounce" in Bitcoin dominance, with historical parallels to 2019-2020 cycles hinting at prolonged altcoin-friendly conditions. - JPMorgan fore

The cryptocurrency sector finds itself at a crucial crossroads as Bitcoin's dominance shows signs of weakening and early indicators of an altcoin rally appear, fueling ongoing discussions among market observers about the future direction of digital assets.

dominance—which measures BTC's share of the total crypto market value—has dropped by more than 5% since May, standing near 59.90% by late November, . Analyst Matthew Hyland has called this downward trend "bearish," implying that capital may be shifting toward other cryptocurrencies, though specialists note that a widespread altcoin surge still depends on additional triggers .

The Altcoin Season Index, which evaluates how leading altcoins perform compared to Bitcoin, has delivered mixed results.

Bitcoin News Update: Bitcoin's Dominance Wanes as Institutional Investors Turn to Altcoins Amid Changing Market Trends image 0
Although it recently hit 100—a level often linked to strong altcoin performance—other indicators, such as , remain at 28, which is still considered "Bitcoin season" . This contrast underscores the divided sentiment within the market. For reference, the index , pointing to a slow transition as investors broaden their holdings while Bitcoin consolidates. that altcoin rallies often start when "everyone gives up," with funds moving into undervalued assets as Bitcoin's momentum slows.

Institutional involvement further highlights the possibility of a renewed altcoin market.

(SOL) was the top performer in November, drawing $118 million in institutional investments—the most among digital currencies—thanks to new U.S. spot ETFs featuring staking options. came next with $28.2 million in inflows, in altcoins with practical use cases. These trends mirror broader liquidity movements: Bitcoin and experienced outflows, while altcoins such as (ADA) and XRP , based on TradingView data.

Technical analysis also points to a potential shift. The recent uptick in Bitcoin dominance from its September low has been described by Hyland as a "dead cat bounce," suggesting the downward trend may continue, freeing up capital for altcoins. At the same time,

and early 2020—when Bitcoin dominance fell, briefly recovered, and then declined again—are being compared to the current market by analyst Michaël van de Poppe. on the dominance chart, if validated, could further support favorable conditions for altcoins.

Nevertheless, broader economic conditions and regulatory shifts remain key influences. JPMorgan strategists forecast that Bitcoin could climb to $170,000 within a year, citing reduced volatility and lower leverage in perpetual futures. However, they warn that any upcoming altcoin rally may not mirror previous cycles,

with tangible applications rather than speculative smaller tokens. Moreover, and the potential approval of ETFs for assets like XRP could boost institutional interest in altcoins.

At present, the market is in a state of transition. While the decline in Bitcoin dominance and selective altcoin advances create an environment ripe for rotation, a full-scale altcoin season—where 75% of leading altcoins outperform Bitcoin—has yet to materialize. Investors should keep an eye on dominance patterns, institutional movements, and regulatory changes as the market navigates this period of uncertainty.

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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.

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