- Bitcoin dominance is a crucial gauge of where investors are funneling their money.
- The emergence of a death cross after four years isn’t just a technical signal – it’s a clear warning.
Despite Bitcoin [BTC] ending the first week of 2025 on a high, reclaiming $102K after two weeks of market downturn, its dominance has taken a small dip.
This could signal that altcoins are starting to grab the spotlight, as investors eagerly rush to diversify.
So, is a repeat of the 2021 cycle on the charts?
Typically, when Bitcoin dominance slips, it’s often a strong sign that an altcoin season is about to kick off. And right now, that hypothesis is gaining weight.
Over the past week, the market has turned green, with high-cap altcoins posting double-digit gains. While it’s still early to make bold predictions, the signs are there, and it’s a trend that’s definitely one to watch.
Why? Four years ago, Bitcoin started Q1 with its dominance at 72%, but in less than four months, that fell below 40%, just as a death cross appeared on Bitcoin’s dominance chart.
In response, Ethereum [ETH] skyrocketed from $737 in January to $4,183 by May, a massive 467% jump. And get this: that’s four times the 107% jump Bitcoin made in the same period.
So, is history repeating itself? The market seems to be hinting at it. In mid-November, a death cross formed on Bitcoin’s dominance chart for the first time in four years.
Source: TradingView
The result? BTC’s market share slipped from 60% to 54% in just two weeks. During that same time, Ethereum surged 30%, closing above $4K.
But much has changed in the past four years. While a death cross often signals an altcoin rally, it doesn’t automatically mean Ethereum will lead the charge.
The crypto landscape has evolved, and fresh contenders could rise to take the spotlight.
So, who could take the lead as Bitcoin dominance slips?
Interestingly, memecoins are making a strong splash, dominating the top gainers’ list with weekly surges of over 50%. In fact, three out of the top five tokens are meme-based, proving that the meme mania is on a rise.
However, this trend also highlights that investors are hunting for fast, short-term gains, especially with Bitcoin breaking the $100K barrier. It’s clear – memecoins are following the lead.
What’s even more interesting is how meme-based tokens are outperforming traditional altcoins right now. Take DOGE/BTC, for example – on the brink of a breakout with the MACD turning bullish.
Source: TradingView
Read Dogecoin’s [DOGE] Price Prediction 2025–2026
The takeaway? Investors seem more interested in the “hype” than the long-term “value,” making the memecoin market one to watch closely.
As Bitcoin dominance faces increasing pressure from those seeking cheaper, less volatile alternatives, the spotlight on memecoins could grow even brighter.
