Bitcoin achieved a historic milestone by reaching a new all-time high exceeding $111,000, while simultaneously experiencing a notable decline in market dominance. This divergence indicates shifting dynamics within the cryptocurrency landscape.
Bitcoin’s dominance index (BTC.D) fell from 66% to 64.5% despite the flagship cryptocurrency’s price surge. Meanwhile, the combined market capitalization of altcoins surged nearly 10% within a short period, breaking through the $1.2 trillion threshold.
Market analysts highlight that this declining Bitcoin dominance traditionally precedes significant altcoin rallies. Technical indicators suggest further potential upside for altcoins, especially if BTC.D dips below key moving averages like the 50-day or 200-day EMA.
Adding momentum to altcoin prospects, stablecoin reserves on major exchanges remain elevated. Binance’s stablecoin holdings alone exceed $31 billion, signaling substantial liquidity positioned for altcoin investments.