- Bitcoin dominance fell by 4.5% to 61.82%, driven by strong ETH and XRP gains and renewed altcoin market strength.
- Volume surged to $77.93B, suggesting active capital rotation from BTC into altcoins, not passive rebalancing.
- If BTC dominance breaks below 60%, historical patterns suggest a short lived but powerful altcoin season may intensify.
Bitcoin dominance has had a sharp decline in July, leading to renewed altcoin activity across the market. As of July 18, Bitcoin share of the total crypto market is at 61.82%, down from over 65% earlier in the month.
This 4.5% drop, although seemingly small, has already begun to impact altcoin pairs and their performance against Bitcoin. Ethereum and XRP have taken a major share, driving the dominance lower. This change is similar to trends seen in prior cycles, though current outlook differs due to a broader pool of altcoins.
Volume Surge Confirms Active Shift to Altcoins
The BTC dominance chart shows two major declines in recent months. The first drop occurred between November and December 2024. During that time, Bitcoin dominance fell before rebounding early in 2025.
The second and ongoing decline started in early July 2025. From a high above 65%, dominance has dropped to 61.82%. This drop comes with a surge in volume, now at approximately $77.93 billion.
Market Cap BTC Dominance Chart: Daan Crypto Trades
The high trading activity suggests capital rotation is underway rather than passive rebalancing. Bearish candle formations in July further confirm strong selling pressure from BTC to altcoin pairs.
The lower section of the chart shows this with high volume spikes. This behavior has pushed BTC dominance to its lowest level since mid-April, weakening its overall control over the crypto market.
Ethereum and XRP
Unlike earlier altcoin runs, much of the current dominance loss is attributed to Ethereum and XRP strength. These two assets have gained strength, with a large portion of the rotating capital.
During previous cycles, fewer altcoins competed for dominance, allowing larger individual gains. In early 2021, for instance, dominance fell from 74% to 40% within 140 days. This period, along with the late 2017 rally, saw altcoins post extraordinary gains.
However, the current environment includes many more altcoins, diluting individual impact. Despite this, the move is notable, especially as ETH and XRP continue to rise in both valuation and dominance contribution.
Trend Speed Shows Short Windows of Opportunity
Altcoin seasons typically unfold fast, often within a few months. Historical patterns show dominance changes happen over short timeframes. The post election run showed a 7% drop in BTC dominance, but the effect was short lived.
This ongoing move, while smaller, already shows strong market response. If dominance falls below 60%, more altcoin strength may emerge. However, sharp moves in Bitcoin or external market events could reverse the trend.
Overall, the decline in BTC dominance has led to notable altcoin activity, supported by volume spikes and strong ETH and XRP performance. The current trend shares similarities with past cycles but unfolds within a broader and faster moving market outlook.
