- Bitcoin dominance has started to fall while ETH/BTC rebounds, signaling a potential altcoin season and rotation into alternative crypto assets.
- Altcoin-to-Bitcoin ratio has touched key support and may follow a multi-year pattern toward a third peak by late 2025.
- Macro conditions including Fed rate cut signals and global liquidity expansion are strengthening the broader crypto market outlook this cycle.
Altcoin momentum is building as Bitcoin dominance rolls over and capital rotation into altcoins accelerates. Key charts and on-chain activity suggest that a breakout in altcoin valuations could be underway, following a recurring multi-year cycle.
Altcoins Show Potential Third Cycle Peak Against Bitcoin
Technical analysis shared by MerlinTrader reveals a long-term chart comparing the altcoin market capitalization against Bitcoin. The chart highlights major tops in early 2018 and late 2021, both touching a resistance trendline. A similar pattern is now emerging in 2025.
After declining from the 2021 peak, the ratio approached the lower trendline support in mid-2025. A projected arrow indicates a potential rally, forming what would be a third peak by late 2025. The chart suggests symmetry in three-year intervals between altcoin cycles, supported by consistent price action along two parallel trendlines.
The structure of this repeating cycle indicates the market may be entering a bullish altcoin phase, especially with Bitcoin currently priced at $109,315. This setup has led traders to anticipate a return to altcoin dominance in the coming months.
ETH/BTC Bounce and Bitcoin Dominance Breakdown
According to Bitcoinsensus, ETH/BTC has bounced strongly from macro support, while Bitcoin dominance (BTC.D) has started to decline. Historically, this pattern preceded altcoin surges. The chart shows BTC.D peaking around 58.19% earlier this year, just as ETH/BTC hit multi-year lows.
Since then, Ethereum has begun outperforming Bitcoin. A red arrow pointing down on BTC.D and a green arrow pointing up on ETH/BTC signal capital rotation.This setup looks a lot like past cycles—when Bitcoin started slipping, altcoins quickly drew in fresh capital and took the spotlight.
Macro Tailwinds Support Broader Crypto Growth
At Jackson Hole, Fed Chair Jerome Powell opened the door to a possible rate cut this September, raising hopes that easier money is on the way.
Governments, meanwhile, are still rolling out massive fiscal support, and the global money supply keeps climbing. The U.S. Treasury is also boosting liquidity by pushing more short-term debt into the market.
With big players shifting funds and legal hurdles like the Ripple-SEC case now cleared, altcoins could be gearing up for a strong comeback.
