Bitcoin (BTC) remains on its historic price trajectory, trading in the low $90,000 range at the time of writing. However, a leading trading firm suggests that Bitcoin dominance (BTC.D) falling below a critical threshold could signal the onset of the long-awaited altcoin season.
Interest Rate Cuts and Trump Administration to Boost Crypto
Singapore-based trading firm QCP Capital recently shared its insights via a Telegram broadcast, highlighting Solana’s (SOL) remarkable weekend rally. SOL surged over 17% from Friday’s lows, outperforming both Bitcoin and Ethereum (ETH).
Despite SOL’s strong performance, many investors remain cautious about an impending alt season, given Bitcoin’s ongoing climb toward the psychological $100,000 milestone. Supporting this, analysis from Rekt Capital suggests BTC is still in the early stages of its parabolic run.
QCP Capital, however, predicts that factors like Donald Trump’s re-election victory and anticipated Federal Reserve interest rate cuts could create an environment ripe for a full-blown altcoin season in the coming months.
Key Bitcoin Dominance Level Identified
QCP Capital explained that altcoins typically outperform once major cryptocurrencies consolidate following significant rallies:
“Historically, we’ve seen altcoins outperform whenever the majors consolidate after a significant rally as profits rotate into smaller-cap coins. BTC’s dominance is around 60% now, and it will likely need to drop below 58% to signal the start of altcoin season.”
Currently, Bitcoin dominance (BTC.D) stands at 60.10%. Over the past two years, BTC.D has risen steadily from 39.92% in November 2022, leaving most altcoins underperforming Bitcoin. Recently, however, altcoins like Solana (SOL), Cardano (ADA), and XRP have started to show signs of recovery, boosted by expectations of a pro-crypto Trump administration.
Crypto analyst @MikybullCrypto echoes this sentiment, forecasting a decline in BTC.D starting in December. The analyst predicts that altseason could begin as early as late November and last until March 2025.
Meanwhile, Fundstrat’s Tom Lee maintains his bullish outlook on Bitcoin, forecasting it will reach $100,000 by year-end. Despite Bitcoin’s continued momentum, the recent breakout in the altcoin market cap above a critical resistance level suggests that altcoin season may be closer than previously anticipated.
