The price of Bitcoin (Bitcoin USD) continues to fluctuate near the $67,200 level after a week of price movements within a narrow range. However, its long-standing dominance of the broader cryptocurrency market is showing a marked decline today.
New data from CoinGecko reveals that the total market capitalization of cryptocurrencies has expanded to exceed $2.38 trillion, while Bitcoin's dominance has fallen below 59%, currently standing at 58.82%.
This gradual decline coincides with a sudden surge in momentum for Ethereum, which rose by +1.1% overnight and into Monday morning's trading session, while Bitcoin is moving sideways with a decrease in trading volume.
The fundamental shift in the data suggests that institutional money may be gearing up for a massive turnover of capital in the crypto market, which could herald the start of the alt season.
What does a decline in supply chain dominance actually show?
The decline in market dominance to 58.48% represents a notable lull after the peaks recorded in mid-2025, when Bitcoin controlled nearly 66% of the total wealth of crypto investors.
Tom Lee, president of Bitmine, a company specializing in Ethereum vaults, recently indicated that this gradual market pressure will eventually lead to a violent V-shaped recovery in the closely watched ETH/BTC pair.
Current exchange flow metrics support the hypothesis that liquidity moves between ecosystems rather than exiting the crypto market entirely. Ethereum saw $31.6 million leave centralized exchanges in a single day recently, reducing secondary supply and contributing to declining dominance figures.
This is precisely the kind of localized supply shock that typically precedes a major decoupling phase in Ethereum. But the picture isn't entirely rosy for altcoin optimists.
Analysts like Kyle Redhead believe that the migration of traditional assets to the blockchain is entirely in Ethereum's favor, but extremely high funding rates indicate that there are still many long buy positions for individuals, suggesting that the bottom may not have been reached yet.
Bitcoin/USD Price Prediction: Can BTC hold onto 67,000 USD as dominance fades?
Bitcoin (Bitcoin USD) is currently consolidating between $64,000 and $72,000, creating a range that is slowly decreasing the active trading volume of the underlying asset. This is despite the clear disappearance of total reserves from spot exchanges, sparking heated debate among traders about whether a massive supply shock is imminent.
If the current technical channel support holds at 66,500 USD, Bitcoin may still be able to muster enough local liquidity to strongly retest the psychological barrier of 70,000 USD.
However, if this bottom collapses under the pressure of capital shifts toward alternative currencies, the market structure will rapidly weaken. In this bearish scenario, the $64,000 level becomes the immediate short-term target, followed closely by deeper institutional demand zones lurking near $61,000.
The crucial level to watch closely is 58% on the Dominance Meter chart, which may ultimately determine whether Bitcoin prices will break out to the upside or crash completely.
Ethereum ETF flows challenge Bitcoin's liquidity monopoly
Institutional interest in Ethereum is growing, with rising market metrics indicating increased inflows into exchange-traded funds (ETFs). Last week closed with positive inflows of approximately +$20 million across various Ethereum ETF products, with BlackRock, Grayscale, and Fidelity accounting for the majority of this volume, according to CoinGlass data.
Analysts at FalconX note that Ethereum’s technological advantages in tokenized assets and its potential for generating returns are attracting new investments that might previously have gone to Bitcoin exchange-traded funds.
To confirm the decoupling, the ETH/BTC pair needs to rise above the 0.035 level with high trading volume, as it is currently trading at 0.02939. If the whales manage to reclaim the vital 2,000 USD support, bullish momentum could begin to form.
However, if the ratio fails to break through 0.035 and the 2,000 USD level cannot be recovered, this may only be a temporary trend, with the support level at 1,800 USD potentially becoming the likely target.
The post Bitcoin dominance drops to 58%: Have smart capital started moving to Ethereum? appeared first on Cryptonews Arabic.
