Altcoin Rally Hopes Rise After Bitcoin Surge

Historically, Bitcoin tends to lead a rally. Once it settles, other coins usually begin to move. This pattern has played out in past bull runs

Bitcoin recently hit a new all-time high above $111,000, sparking interest in the broader crypto market. After a small pullback from the highs, the focus is turning to altcoins, with several showing early signs of movement. Solana rose 4%, XRP lifted 1%, and Cardano saw a 2% gain. These numbers have led some to believe that the next stage of the market cycle could be near.

Historically, Bitcoin tends to lead a rally. Once it settles, other coins usually begin to move. This pattern has played out in past bull runs, and many traders now expect the same again. They are watching closely for any signs of capital rotating from Bitcoin into altcoins.

Bitget Research Chief Analyst Ryan Lee told CoinDesk that the start of an altcoin run may depend on a drop in Bitcoin’s market dominance. If that happens, it could open the door for coins like Solana and XRP to gain more ground. At the time of writing, Bitcoin’s dominance stands at around 60.58%, according to CoinGecko.

Similarly, eToro Australia analyst Reece Hobson told Decrypt that two conditions could set off an altcoin rally. First, he says more liquidity needs to flow into the system, likely through monetary easing. Second, Bitcoin dominance would need to hit the 70% range. Until then, altcoin gains may remain limited.

Some market watchers believe the signs of an altcoin season are already appearing. According to trader Carl Moon, Bitcoin’s market share is already falling, which he says could mark the start of an altcoin breakout. His view adds to the growing belief that attention may now shift to other tokens.

However, not everyone shares the same sense of urgency. Ash Crypto took a more cautious stance, encouraging traders to be patient. He noted that in past market cycles, altcoin rallies have typically been brief, lasting just four to five months. In the last cycle, major altcoin gains took place between January and May 2021. In an earlier cycle, from 2013 to 2017, the bulk of the rally occurred between June and December. Based on those patterns, he believes another surge is likely—but timing it will require patience.

Meanwhile, Mena Theodorou, co-founder of Coinstash, gave a more cautious view. He said Bitcoin is still in its price discovery phase. This stage tends to keep focus and capital centered on Bitcoin, making it less likely for altcoins to see a strong, market-wide rally in the short term. He added that while a few altcoins or sectors might still perform well, a broader move across the market is less likely just yet.

Traders looking for clear signals are keeping a close eye on Bitcoin’s market dominance. While some believe a drop would help altcoins, others suggest dominance might need to rise further before altcoin interest returns. This difference in view shows that even within the market, there’s no single answer.

In the meantime, Ethereum’s recent gains have added to the positive sentiment. As Ethereum climbs in market value, some see it as a signal that the market is ready for another wave of movement outside Bitcoin. However, others still urge caution.

While excitement is growing, the full rotation into altcoins hasn’t happened yet. Traders and analysts alike are waiting to see what comes next, knowing that past cycles have always followed a similar path—first Bitcoin, then the rest. Now, all eyes are on whether that next step is just around the corner.