- Bitcoin dominance is a crucial gauge of where investors are funneling their money.
- The emergence of a death cross after four years isn’t just a technical signal – it’s a clear warning.
Despite Bitcoin [BTC] ending the first week of 2025 on a high, reclaiming $102K after two weeks of market downturn, its dominance has taken a small dip.
This could signal that altcoins are starting to grab the spotlight, as investors eagerly rush to diversify.
So, is a repeat of the 2021 cycle on the charts?
Typically, when Bitcoin dominance slips, it’s often a strong sign that an altcoin season is about to kick off. And right now, that hypothesis is gaining weight.
Over the past week, the market has turned green, with high-cap altcoins posting double-digit gains. While it’s still early to make bold predictions, the signs are there, and it’s a trend that’s definitely one to watch.
Why? Four years ago, Bitcoin started Q1 with its dominance at 72%, but in less than four months, that fell below 40%, just as a death cross appeared on Bitcoin’s dominance chart.
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