Bitcoin Dominance (%) – Source: Trading View

This time, its dominance could have topped at 65% as a handful of high-value altcoins have entered the market like Solana (SOL) and BNB Coin (BNB), while well-established tokens like XRP have seen their market cap increase significantly.

Back in 2021, BTC’s dominance declined sharply to 40% just four months after it double-topped at 75%. If history repeats, as the chart above seems to be indicating, we could expect a significant decline in dominance over the next few weeks.

We have already gotten some early signals on this. For example, Ethereum just made a new all-time high, nearing $5,000 for the first time in history, while BNB Coin (BNB) moved from $900 to $1,300 to set a new price record as well.

The January – May 2021 altcoin season was accompanied by a move from around $1,300 to $4,600 for ETH, meaning a 220% gain. History does not necessarily repeat, but it often rhymes.

If we get a similar push during this cycle, it means that ETH could rise from $2,500 to $8,200 at least. This would mean that ETH’s market cap would more than triple, nearing the $1 trillion mark.

Market conditions remain favorable despite Trump’s latest decisions. The market is waiting to read into Friday’s inflation data to confirm if the Federal Reserve has everything it needs to cut rates, as expected, during next week’s FOMC meeting.

If the U.S. central bank meets the market’s expectations of a 25bps cut, cryptos may resume their upward trajectory. Since uncertainty is high, it is understandable that market participants have adopted a cautious approach ahead of this decision.

Nonetheless, the stage looks set for the continuation of the uptrend we saw recently, as institutional adoption is on the rise, and regulators are paving the way for the crypto industry to keep gaining ground in the United States.