Key Insights:
Rekt Capital believes Bitcoin season will wane off after it touches a high of 71%.
Other analysts also predict the same, with some thinking that the current 62% dominance could be the highest for BTC Season.
Analysts that disagree say that another 9% increase in Bitcoin dominance would crush the altcoins by 50%.
Top valuable cryptocurrencies that have been seeing huge undervaluation are Ethereum, Solana, XRP and Toncoin.
Amid diminishing hopes and a dwindling altcoin market cap, Rekt Capital has predicted that there could be an altcoin season in 2026. This alt season would start after the Bitcoin dominance reaches its peak, presumably around 71%. At press time, Bitcoin dominance was at 62%.
Altcoins have seen high corrections from their upper levels, with their leader Ethereum, correcting from $4000 in Dec 2024 to $1800 at press time.
Other altcoins like XRP, Solana, BNB Coin, Toncoin, Sui and Chainlink and many others have seen similar corrections. Among altcoins, memecoins were the worst affected, with most of them losing around 70% to 75% of their 2024 highs.
Altcoin Market Performance in 2025
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In the last one and a half months, the altcoin market cap has fallen from $1.6 trillion to $1.01 trillion at press time, i.e., a fall of 38%. A similar fall was also noted in the altcoin index, which fell from the levels of 40 in Jan 2025 to 15 in the current month.
The major reason for this fall is the lack of market liquidity. The US Federal Reserve, in its January 29th meeting outcome, said that there was very high inflation in the US markets, and it finds very little room to cut the interest rates further.
Market participants started withdrawing their money in anticipation of high inflation as well as high interest rates for loan payments, and since Bitcoin enjoyed corporate liquidity, the only sector that lost the most was the altcoins.
Commenting on the same post as Rekt Capital, one analyst said that the Bitcoin dominance could fall from 62% as opposed to 71% indicated in the post. This was probably because 61.8% was a Fibonacci retracement number where there is a likelihood of a reversal in Bitcoin's dominance.
The investor further added that an alt season is inevitable in the crypto markets and altcoins will have their way soon.
A popular crypto market analyst who goes by his Twitter name Ash Crypto also supported Rekt Capital's analysis, saying that every time Bitcoin reached a dominance of 70% or more, it triggered an altcoin season soon after.
However, another crypto analyst disagreed with Rekt Capital saying that a further increase in Bitcoin dominance to 71% would destroy the altcoins 50% more than their current levels. He said altcoins are already in a very oversold territory this 71% dominance is unlikely to arrive.
Ethereum has fallen 55% from its $4000 high in December 2024 to $1800 levels at press time. Its RSI too has fallen to a level of 36, which is very close to the oversold zone (below 30).
ETH USDT 1D Charts
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XRP has been at a very critical point of the $2 support level, breaking which it could fall even further. Its RSI too has moved below the level of 30, signalling its presence deep inside the oversold territory.
XRP USDT 1D Charts
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Solana too has fallen deep inside bearish territory after its price crashed from $294 in January 2025 to $120 in April 2025. Solana's RSI was at 36 at press time and has moved very close to the oversold territory (<30).
Solana USDT 1D Charts
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Toncoin is the only major altcoin that has seen a revival from the lows of $2.3 to the current price of $3.6 making a high at $4.1. However, it is still at a very much undervalued zone despite seeing a price resurgence. We believe Toncoin could easily cross $7.5 once its price moves above the resistance at $4.1 followed by the resistance at $6.
TON USDT 1D Charts
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Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.