- Bitcoin’s dominance is a crucial indicator of how investors channel their money.
- The appearance of a death cross after four years is not just a technical signal – it is a clear warning.
Although Bitcoin (BTC) ended the first week of 2025 on a high, reclaiming $102,000 after two weeks of market downturn, its dominance has declined slightly.
This could indicate that altcoins are starting to attract attention, as investors eagerly rush to diversify.
So, is a repeat of the 2021 cycle in the charts?
Typically, when Bitcoin dominance wanes, it is often a strong sign that an altcoin season is about to begin. And today, this hypothesis is gaining weight.
Over the past week, the market has turned green with large-cap altcoins posting double-digit gains. While it’s still early to make bold predictions, the signs are there and this is a trend to watch.
For what? Four years ago, Bitcoin started the first quarter with 72% dominance, but in less than four months it fell below 40%, just as a death cross appeared on the dominance chart of Bitcoin.
In response, Ethereum (ETH) rose from $737 in January to $4,183 in May, a massive jump of 467%. And get this: That’s four times the 107% jump Bitcoin made over the same period.
So, is history repeating itself? The market seems to be hinting at this. In mid-November, a death cross formed on the Bitcoin dominance chart for the first time in four years.
Source: TradingView
The result? BTC’s market share fell from 60% to 54% in just two weeks. During the same period, Ethereum surged 30%, closing above $4,000.
But a lot has changed over the past four years. Although a death cross often signals an altcoin rally, it does not automatically mean Ethereum will lead the charge.
The crypto landscape has evolved and new competitors may rise to take center stage.
So who could take the lead as Bitcoin dominance wanes?
Interestingly, memecoins are making a splash, dominating the market. list of top winners with weekly surges of more than 50%. In fact, three of the top five tokens are based on memes, proving that meme mania is on the rise.
However, this trend also highlights that investors are looking for quick, short-term gains, especially when Bitcoin breaks the $100,000 barrier. It’s clear: memecoins are following suit.
What’s even more interesting is how meme-based tokens are currently outperforming traditional altcoins. Take DOGE/BTC, for example – on the verge of a breakout with the MACD turning bullish.
Source: TradingView
Read Dogecoin (DOGE) Price Prediction 2025-2026
Takeaway meals? Investors seem more interested in “hype” than long-term “value,” making the memecoin market one to watch closely.
As Bitcoin’s dominance faces increasing pressure from those seeking cheaper, less volatile alternatives, the spotlight on memecoins could become even brighter.
