Altcoin Season Rally Begins as Bitcoin Dominance Drops Below 59%

Bitcoin’s hold on the crypto market is starting to weaken. $BTC dominance has fallen below 59%, while altcoin trading volume is now nearly four times higher than Bitcoin’s. At the same time, $ETH/$BTC has broken a nearly five-year downtrend, pointing to a possible shift toward altcoins.

These signs are sparking the talk of a broad “Altseason.”

Bitcoin Dominance Falls Below 60%

The first sign of a possible market shift is Bitcoin’s falling dominance. $BTC dominance has dropped to around 58.9%, slipping below the important 60% level. This means Bitcoin now holds a smaller share of the total crypto market.

At the same time, altcoin dominance has jumped by 16.7% to 8.75%. This shows altcoins are taking a larger share of the crypto market.

The shift follows a pattern often seen during altcoin seasons. Bitcoin leads first, then its dominance falls as traders move more capital into higher-risk altcoins.

Altcoin Trading Volume Jumps Nearly 4x Bitcoin

Glassnode data shows altcoin spot trading volume has risen to nearly four times Bitcoin’s volume, reaching its highest level since September 2025. The shift is also visible in performance, with 72.5% of tracked altcoins outperforming Bitcoin through September 23, compared with 39% during the August rally.

Spot buying is also playing a bigger role, while altcoin futures leverage has remained mostly unchanged.

The same trend is visible in major altcoins.

U.S. spot Ethereum ETFs recorded six straight days of inflows, ending the week with $689.9 million in net inflows. Meanwhile, U.S. spot XRP ETFs extended their inflow streak to 11 straight weeks, with cumulative inflows now above $1.79 billion.

$ETH/$BTC Adds Another Altcoin Signal

The $ETH/$BTC chart adds another sign of rising altcoin strength. Ethereum has finally broken out of a nearly five-year downtrend against Bitcoin and is about to close its third straight green month.

This matters because Ethereum often leads when money starts moving beyond Bitcoin. A stronger $ETH/$BTC trend can also support large- and mid-cap altcoins.

Meanwhile, the OTHERS/$BTC chart shows a similar shift. After a four-year downtrend, the ratio has broken above its long-term trendline and started moving higher after the 2026 breakout.

Similar patterns appeared in earlier market phases around 2017, 2021, and 2024, when $ETH and other altcoins started gaining strength after Bitcoin led the market.