A significant market rotation is gaining momentum as Bitcoin’s grip on cryptocurrency dominance weakens and Ethereum rallies, signaling the onset of a potential altcoin season. Bitcoin’s market share has retreated to 63.4% after starting the year at 66%, reflecting increasing capital flows toward alternative cryptocurrencies.
Ethereum is spearheading the shift with its price punching past $3,900, doubling since April 2025. This surge represents growing conviction in major altcoins and often precedes broad-based altcoin rallies, according to market analysts who view Ethereum as a key predictor for multi-coin market cycles.
Despite institutional involvement driving the current rally, retail participation remains notably subdued. Industry observers suggest the retail investor wave is still poised to enter the market, which could amplify the altcoin rally’s intensity during its next phase.
The U.S. House of Representatives added another dimension by advancing new cryptocurrency legislation proposals. These developments could recalibrate the regulatory framework governing digital assets amid the unfolding altcoin market expansion.