tl;dr
Last week, altcoins surged while Bitcoin (BTC) remained near record highs, indicating a shift toward higher-risk tokens. Bitcoin reached an all-time high of $123,054 before stabilizing between $116,000 and $120,000, with its market dominance dropping 6.9%, the largest decline since December 2023. La...
Altcoins surged last week while Bitcoin (BTC) hovered near record highs, signaling a shift in market leadership toward higher-beta tokens, according to the latest “Bitfinex Alpha” report. Bitcoin hit an all-time peak of $123,054—a 65% jump from its April low—before settling into a sideways range between $116,000 and $120,000. During this consolidation, Bitcoin’s dominance over the total crypto market cap dropped 6.9%, marking the steepest decline since December 2023 after seven straight daily falls in dominance. Historically, such dominance dips without notable BTC sell-offs often herald altcoin-led phases.
Large-cap altcoins led the catch-up rally with Ethereum (ETH) rising 19.45% and XRP climbing 21.4% over the week. The broader market index, excluding stablecoins and the top ten assets—dubbed the “Others” index—soared 35%, equivalent to roughly $85 billion in gains. Solana (SOL) also outperformed, drawing liquidity from Bitcoin as traders chased higher upside potential. This extensive participation beyond early BTC accumulation suggests a more mature mid-cycle expansion phase, where investors embrace greater risk tolerance.
Despite losing relative market share, Bitcoin remains fundamentally strong, trading above the cost basis of 95% of its circulating coins. Long-term holders are increasingly distributing coins to shorter-term holders, exchange-traded funds, and retail investors. The spot price is hovering just below the short-term holder resistance band near $120,000, a level historically ripe for profit-taking, with the next significant resistance around $136,000. This dynamic keeps Bitcoin solid but more sensitive to downturns, while altcoins continue to attract new capital flows.
The market outlook points to a baton pass rather than a full reversal. Bitcoin’s consolidation above its realized cost provides a solid floor, but momentum currently favors altcoins as capital rotates into these assets. Whether this rotation sustains depends on ongoing spot demand for Bitcoin and sustained liquidity in large-cap altcoins. For now, performance varies widely across the market, with altcoins setting the tone while Bitcoin consolidates its earlier gains.