Bitcoin dominance slips below 50% – Is altcoin season around the corner?

• Bitcoin dominance dropped under 50% after Trump included altcoins in the U.S. “Crypto Strategic Reserve”.
• The first White House Crypto Summit is set for the 7th of March.

The crypto market cap has surged 8%, reclaiming $3 trillion, as Bitcoin [BTC] jumped past $90K following Trump’s confirmation of a Bitcoin Strategic Reserve.

Despite BTC’s rally, Bitcoin dominance (BTC.D) dropped from 55.4% to below 50%, indicating increased capital rotation into altcoins. Historically, such declines in BTC.D have preceded altcoin market expansions.

Trump’s announcement that the U.S. “Crypto Strategic Reserve” will include Ripple [XRP], Solana [SOL], and Cardano [ADA] triggered a sharp rally in these assets, as investors repositioned their portfolios.

The inclusion of altcoins sparked criticism

Critics contended that Bitcoin should be the sole asset in a strategic reserve. However, Trump later clarified on Truth Social that Bitcoin and Ethereum would serve as the core holdings of the reserve.

Despite this clarification, high-cap altcoins experienced significant volatility and capital inflows.

BTC surged 9.44%, printing its longest green candlestick since the post-election rally. XRP gained 34.13%, while ADA posted a historic 72.15% single-day increase, reclaiming the $1 level. However, Bitcoin’s dominance swiftly rebounded after its initial decline.

At press time, BTC.D stood at 61.44%, as XRP, ADA, SOL, and other high-cap altcoins retraced over 10%, failing to confirm resistance flips into support on higher timeframes.

Source: CoinMarketCap

Meanwhile, BTC remains above $90K, correcting only 2% from its intraday high. However, a decisive bullish breakout is yet to be confirmed. 

With profit-taking accelerating in high-cap altcoins, Bitcoin stands to benefit from renewed capital inflows, as reflected in the rising BTC dominance.

Bitcoin dominance rebounds: What it means for BTC?

The market remained divided after the highly anticipated executive approval of Strategic Reserves.

Speculation intensified around the inclusion of altcoins, with analysts debating whether it was a strategic liquidity maneuver or an attempt to influence market structure. 

The way these altcoins soared on the news and then crashed just as fast adds weight to the argument. Meanwhile, Bitcoin dominance has increased by 1.75%, suggesting a potential shift in capital allocation. 

Source: TradingView (BTC.D)

However, BTC remains exposed to volatility and must hold above the $88K support level in the coming days to confirm market strength.