Altcoin Breakout: Crypto Market Signals Point to Start of Altseason

Altcoin Breakout: Crypto Market Signals Point to Start of Altseason

Bitcoin and USDT Losing Ground as Capital Flows Into Altcoins

May 13, 2025 —
A powerful shift in market sentiment is underway in the crypto space as signs increasingly point to the arrival of “altseason” — a period in which altcoins significantly outperform Bitcoin. Over the past week, major altcoins like Ethereum, XRP, and Solana have posted double-digit gains, while Bitcoin and USDT dominance have both declined, suggesting a broad capital rotation within the digital asset ecosystem.

Bitcoin Dominance Sees Sharpest Weekly Drop Since 2024

The Bitcoin Dominance Index (BTC.D) has tumbled 4% in just six days, marking its steepest decline since November 2024. This fall indicates that investors are moving funds away from Bitcoin and into alternative cryptocurrencies, a hallmark indicator of altseason.

Renowned crypto analyst Michael Van Poppe pointed to a bearish divergence on the BTC.D weekly chart, noting it as a strong sign that Bitcoin dominance has peaked.

“Strong bearish divergence on the weekly timeframe, indicating that the Bitcoin dominance has peaked. The end of the bear market for altcoins.” — Michael Van Poppe, MN Capital

Altcoin Market Cap Breaks Downtrend, Sparks Momentum

The TOTAL2 chart, which tracks the total market capitalization excluding Bitcoin, has broken out of a multi-month downtrend that began in January 2025. This breakout includes a bullish daily structure, marked by higher lows and higher highs — an important technical signal suggesting growing strength in altcoins.

If TOTAL2 decisively clears the $1.25 trillion resistance level, analysts believe it could set the stage for a sustained upward move, further validating the altseason narrative.

USDT Dominance Hits Multi-Month Low

The USDT dominance (USDT.D) chart has also dipped to 4.59%, its lowest level since early February 2025, and is approaching a key support zone around 3.90%. This level mirrors previous altseason conditions seen in 2021. A breakdown below this support could signal a flood of capital moving into riskier crypto assets, including both major and emerging altcoins.

Altcoins Outpace Bitcoin in Weekly Gains

Performance across major altcoins has accelerated:

• Ethereum (ETH): +44.3%

• XRP (XRP): +20.6%

• Solana (SOL): +22%

• Bitcoin (BTC): +10%

This performance spread further supports the thesis that altcoins are regaining market share and momentum.

Crypto trader ZERO IKA added that many altcoins have broken above their February and March highs on longer time frames, but still remain 70% to 90% below their all-time highs — a signal that recovery is just beginning.

Outlook: Early Days of Altseason?

While it remains to be seen whether this is the start of a full-fledged altseason, key signals are aligning:

• Declining BTC and USDT dominance

• Capital rotation into altcoins

• Breakouts in altcoin market capitalization

If these trends hold, May 2025 may mark the beginning of a major shift in crypto portfolio strategies, especially for traders and institutional investors seeking alpha beyond Bitcoin.