How far are we from a full-blown copycat season?

Chainfeeds Guide:

Bitcoin's market dominance has declined, while Ethereum's market dominance is rising.

Article Source:

https://www.theblockbeats.info/news/59318

Article Author:

BlockBeats

Perspectives:

b12ny: BTC.D has shown a clear downward trend recently, falling from its previous high point to around 57.7%. Combining this with ETH.D's trend, I believe this is a typical fund rotation signal: market funds are beginning to withdraw from relatively stable assets and pursue higher-risk, higher-potential return targets. Looking back historically, the continuous decline of BTC.D is often a necessary condition for the launch of an Altcoin season. ETH.D not only represents Ethereum's strength but is also often seen as the leader of the entire Altcoin market. Currently, ETH.D is performing strongly, with its dominance rebounding to 14.0%, and accompanied by a rapid price increase of ETH, with ETH/BTC rising over 4% in 24 hours, showing a clear trend of funds flowing from Bitcoin to Ethereum. This trend is the classic script of fund rotation: in the first stage, BTC stagnates or even falls back, and funds begin to flow into ETH; ETH's rise not only boosts market confidence but also creates conditions for more liquidity to be injected into the Altcoin market. What's worth noting next is OTHERS.D (market cap percentage of mid-to-small Altcoins excluding top coins like BTC and ETH). Currently, OTHERS.D is still in a long-term bottom consolidation and has not seen a breakout growth like ETH.D, which means fund enthusiasm is still concentrated on a few top assets. Although SOL also had a significant rise today, making the fund rotation more apparent, it has not yet fully spread to the high-risk, small-cap speculative sector.

Broke Doomer: Looking at the market cap comparison between Altcoins and Bitcoin from 2017 to now, we are currently at a key support level at the bottom of the channel. This position has historically been a sensitive interval for fund entry, often accompanied by warming market sentiment and accelerated rotation. If this support is confirmed, the Altcoin sector may usher in a collective breakout, marking the official start of a new Altcoin season. The typical launch process of an Altcoin season is generally as follows: Bitcoin (BTC) starts the trend → Ethereum (ETH) follows with a rise → BTC makes another move → ETH breaks its all-time high (ATH) → Large-cap Altcoins rise → BTC creates a new high → ETH and large-cap Altcoins simultaneously create new highs → Mid-cap Altcoins take off → Small-cap Altcoins fully break out. We are currently in the third stage, with ETH and large-cap Altcoins creating new highs, and the breakout of other Altcoins can be expected.

Alex Becker: In the previous bull market of 2020, most Altcoins did not start their narrative immediately but waited until ETH's price broke its historical high and rose 3-fold before fully launching. At that time, funds rushed in like a flood into new narratives - such as the gaming sector - driving related tokens to surge 10, 20, or even 50 times, with Sandbox even soaring 80 times, and even the most hollow, marginal game projects could achieve tenfold gains. This phenomenon truly occurred in the mid-to-late stages of the bull market, but once started, it became a concentrated period of wealth effect. I believe this scene will replay in this market cycle. We are currently still in the first stage of the Altcoin season - the dominance of BTC and ETH. We'll have to wait until ETH breaks above $5,000, and mainstream Altcoins complete a 2-3 times rise, before market funds will frantically seek the next narrative. The most likely successors will be AI, RWA, and gaming, as these three areas have already been efficiently entered and made profitable by the crypto industry, possessing strong narratives and high potential returns.