Recent changes in the cryptocurrency market indicate a potential shift into a new era for altcoins as Bitcoin dominance begins to decline and ETH/BTC shows growth.
Potential for a Third Peak in Altcoin Cycle
Analysis by MerlinTrader shows that the altcoin market capitalization compared to Bitcoin is approaching a key support line. This could point to a potential third peak by late 2025. Historically, similar cycles have been observed when altcoins reached significant highs, and the current market structure corresponds with these long-term patterns.
ETH/BTC Bounce and Bitcoin Dominance Decline
Data from Bitcoinsensus indicates that ETH/BTC has strongly rebounded from macro support, while Bitcoin dominance has started to decline. Historically, this pattern has preceded increases in altcoin prices. The chart shows that BTC.D peaked around 58.19% earlier this year, after which ETH/BTC began to exhibit stable growth.
Signs of Growing Macro Support for Crypto
At the recent Jackson Hole meeting, Fed Chairman Jerome Powell mentioned a possible rate cut in September, raising expectations for easier monetary policy. Additionally, governments continue to provide substantial financial support. These macroeconomic conditions are conducive to broader growth in the cryptocurrency market.
The decline of Bitcoin dominance, the rise of ETH/BTC, and positive macroeconomic conditions could create a favorable environment for altcoins. The cryptocurrency market may be poised for a strong resurgence of alternative assets by late 2025.
