Bitcoin Dominance Declines, Signaling ‘Altseason’ as Analysts Predict XRP and Ether Price Rallies Into 2025

Analysts are forecasting a strong rally for Ether and altcoins like XRP heading into January 2025, a period marked by both political and regulatory shifts. Bitcoin dominance, a key metric that tracks Bitcoin’s market share compared to the total crypto market value, has dropped significantly, suggesting that the altcoin market is gearing up for a surge.

Bitcoin Dominance Falls Below Key Support, Indicating Altseason

Bitcoin dominance recently dipped to 56.1%, breaking below its two-year support line. This shift is being interpreted as a clear sign that the crypto market may be entering "altseason" — a term used to describe a period where altcoins outperform Bitcoin. Mikybull Crypto, a prominent crypto analyst, highlighted the decline in dominance on Nov. 30, noting that this trend could trigger a broader rally in smaller cryptocurrencies.

As Bitcoin's dominance wanes, it suggests that investors may be moving profits out of Bitcoin positions and redirecting funds into altcoins, creating the conditions for these smaller cryptocurrencies to thrive.

Ether and Altcoins Poised for Growth Ahead of Key Political Events

Investor interest in altcoins has already begun to pick up, particularly in Ether. Demand for leveraged Ether exchange-traded funds (ETFs) has surged by over 160% since Donald Trump won the 2024 U.S. presidential election on Nov. 5. This growing demand has bolstered expectations of an Ethereum rally, with analysts eyeing potential prices above $4,000 as the year closes.

XRP, the sixth-largest cryptocurrency by market capitalization, is also well-positioned to benefit from the declining Bitcoin dominance. According to Ryan Lee, chief analyst at Bitget Research, XRP could see its price rise to $2.57 before the end of 2024. The potential approval of an XRP ETF, with asset manager 21Shares filing for approval with the SEC on Nov. 1, could act as a major catalyst for a price rally.

Potential Regulatory Shifts: Gensler’s Departure and a Crypto-Friendly 2025

The outlook for altcoins, including XRP, may also be bolstered by regulatory changes expected in 2025. One of the most significant catalysts could come on Jan. 20, 2025, when SEC Chair Gary Gensler steps down from his position. This change could pave the way for more favorable regulations and the approval of additional cryptocurrency ETFs, fueling market optimism.

Additionally, the inauguration of President-elect Donald Trump on the same day could further boost investor sentiment and risk appetite. Some analysts predict that these political shifts could lead to a sharp rally in Ethereum prices, with the potential for Ether to break above $4,000 in the weeks leading up to the inauguration.

Looking Ahead: A Promising 2025 for Altcoins

As the market moves toward 2025, both Ethereum and XRP are poised for potential price surges, driven by shifts in Bitcoin dominance, political changes, and regulatory developments. With the altcoin market gaining momentum and investor interest growing, 2025 could be a pivotal year for cryptocurrencies outside of Bitcoin, particularly for assets like Ether and XRP.