Bitcoin USD continues to hover around $67,200 after a week of tight price action. However, its long-standing dominance over the broader cryptocurrency market is visibly softening today.
New data from CoinGecko reveals that the total market capitalization of cryptocurrencies exceeds $2.38 trillion, while Bitcoin dominance has fallen below 59% and currently stands at 58.82%.
This steady pullback coincides with a sudden burst of momentum from Ethereum, up +1.1% overnight and during this Monday morning trading session, while BTC is moving sideways due to lower volume.
The underlying developments in the data suggest that institutional money could be preparing for a massive turnover in crypto capital, which could signal the start of an alt season.
What the decline in on-chain dominance really shows
Market dominance falling to 58.48% represents a notable cooling from the stubborn highs of mid-2025, when Bitcoin controlled nearly 66% of all crypto investors’ wealth.
Tom Lee, president of Ethereum treasury company Bitmine, recently noted that this gradual market squeeze would eventually trigger a violent V-shaped rally in the closely watched ETH/BTC pair.
BREAKUP
TOM LEE JUST SAID: "THE CRYPTO BOTTOM IS IN PLACE AND IT’S ABOUT TO GO PARABOLIC"
HE ALSO SAYS THAT $BTC AND $ETH WILL HAVE ATH THIS YEAR
HE DEFINITELY KNOWS SOMETHING!! pic.twitter.com/XxH5RgPzH7
– ᴛʀᴀᴄᴇʀ (@DeFiTracer) March 7, 2026
BREAKUPCurrent metrics of exchange flows support the thesis that liquidity is only moving ecosystems rather than leaving the crypto market entirely. Recently, nearly $31.6 million worth of ETH left centralized exchanges in a single day, artificially tightening secondary supply as dominance numbers declined.
This is exactly the type of localized supply shock that typically precedes a significant decoupling phase in Ethereum. But the situation is not completely perfect for altcoin bulls.
Analysts like Kyle Reidhead say that the on-chain migration of traditional assets absolutely favors Ethereum, but excessively high funding rates suggest that retail long positions are still too numerous, hinting that the bottom may not be reached yet.
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Bitcoin USD Price Prediction: Can BTC Hold $67,000 While Dominance Fades?
Bitcoin USD is consolidating between $64,000 and $72,000, creating an extended and unstable range that is slowly losing active volume of the leading asset. Even though overall reserves are clearly disappearing from spot exchanges, sparking fierce debate among traders over whether a massive supply shock will occur.
If the channel’s current technical support of $66,500 remains stable, BTC could still gather enough localized liquidity to forcefully retest the psychological barrier of $70,000.
But if this floor fails under the weight of altcoin rotations, the market structure quickly weakens. In this bearish scenario, $64,000 becomes the immediate sell target, closely followed by deeper institutional demand zones lurking near $61,000.
The final level to watch closely is exactly 58% on the Dominance Metrics chart, which could ultimately dictate whether average BTC prices break out or collapse completely.
Ethereum ETF Flows Challenge Bitcoin’s Liquidity Monopoly
Institutional interest in Ethereum is growing, with rising market indicators pointing to increased ETF flows. Last week closed with approximately +$20 million in positive flows across the many ETH ETF products, with BlackRock, Grayscale and Fidelity accounting for the majority of the volume, according to CoinGlass data.
FalconX analysts note that Ethereum’s technological advantages in tokenized assets and its yield opportunities are attracting new investments that might previously have flowed into Bitcoin USD ETFs.
For a confirmed decoupling, the ETH/BTC pair must surpass the 0.035 level in high volume, and is currently trading at 0.02939. If whales manage to regain the crucial $2,000 support, bullish momentum could develop.
However, if the ratio fails to rise above 0.035 and $2,000 cannot be reclaimed, this could simply be a temporary trend, with support at $1,800 becoming a likely target.
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Bitcoin USD Dominance Falls to 58%: Smart Capital Transforms into Ethereum? appeared first on Cryptonews.
