Altcoins Are Surging as Bitcoin Dominance Pulls Back, Suggesting a Renewed Flow of Capital Into Ethereum

Six-time NBA champion Scottie Pippen joined the crypto conversation with a post on X, declaring "altcoin season is here."

Six-time NBA champion Scottie Pippen has joined the crypto conversation, making a case for the burgeoning altcoin season.

What Happened: Pippen took to X, formerly known as Twitter, to share his thoughts on the crypto landscape.

What Happened: Pippen took to X, formerly known as Twitter, to share his thoughts on the crypto landscape.

Pippen, a basketball legend, is known for his stellar performance on the court, leading the Chicago Bulls to six NBA championships in the 90s. Off the court, Pippen has kept busy with various ventures, including a brief stint as a host on the U.S. version of the hit show "Dancing with the Stars."

Now, Pippen is turning his attention to the world of crypto, engaging with his followers on X. In a recent post, Pippen shared his observations on the crypto market.

"Dump into Bitcoin, they say. But I'm not buying it. Feels more like altcoin season is heating up. What do you think?" Pippen asked his followers, sharing his own small portfolio of seven tokens.

Among them are Ethereum (CRYPTO: ETH), XRP (CRYPTO: XRP), Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA), Dogecoin (CRYPTO: DOGE), Shiba Inu (CRYPTO: SHIB), and Mog Coin (CRYPTO: MOG).

He added, "Let’s see what else you guys are thinking. Drop your top altcoins below."

Pippen's post comes as Bitcoin (CRYPTO: BTC) dominance slipped from 64% to 61.5%, down 0.8% in a single day. According to DamiDefi, this drop indicates a rotation of liquidity toward altcoins, particularly Ethereum and other altcoins.

Analyst Michael van de Poppe also observed a bearish divergence on the Bitcoin dominance chart, which he believes signals the end of the altcoin bear market.

Another trader, known as Niels, noted that BTC dominance falling below 63% saw altcoins "massively outperforming."

Solana soared 30%, and many other tokens surged 80%-100%, while Ethereum surged 45%. He believes the macro risk-on environment is fueling the breakout of altcoins, with momentum shifting in their favor.

Why It Matters: As altcoins gain strength, traders are adjusting their strategies.

Why It Matters: As altcoins gain strength, traders are adjusting their strategies.

Analyst Miles Deutscher, in his latest podcast episode, discussed the emerging trend in the crypto market, noting a clear shift in favor of altcoins.

"Long strong alts on pullbacks until the trend has shifted, whilst they’re still above key high time frame levels," Deutscher advised.

He pointed to Bitcoin at $100,000 and Ethereum at $2,000 as crucial levels for determining the broader market trend.

As long as these flagship tokens remain above these thresholds, Deutscher believes there's potential for further upside. However, he cautions against mixing up short-term opportunities with long-term investments.

"I think it’s a big mistake right now to start loading into or buying or FOMOing into long-term spot just because the market’s moved," Deutscher said.

Instead, he suggests traders should "treat these shorter-term entries as trades" and have a separate strategy for long-term crypto holdings.