Altcoins poised to surge: Can the return of market liquidity break Bitcoin's dominance?

Bitcoin’s dominance has shown a clear decline, and this signal is being closely watched by the market. According to the latest on-chain analysis, the continuous inflow of stablecoins is quietly changing the underlying market ecosystem, preparing for a rotation in risk assets. What’s different this time is that the inflowing funds are pushing prices higher through spot trading rather than leverage operations, indicating that participants’ risk appetite is relatively healthy.

Spot Market Driven vs Derivatives Lagging

From the trading volume perspective, there is an interesting characteristic in the current capital flow: the spot market is showing obvious buying strength, while the activity on perpetual contract platforms is actually declining. What does this contrast indicate? Over-leveraged long positions are gradually being closed on these platforms, while genuine incremental funds prefer to establish positions on the spot side.

Historical experience tells us that whenever the market shifts from high leverage-driven to spot-driven, it usually signals the beginning of a new rotation. The frequent “false alarms” in the previous cycle were often due to unhealthy capital structures. This time’s performance appears more solid.

The True Meaning of Bitcoin’s Declining Dominance

Bitcoin’s market share continues to decline, and this is no coincidence. When market participants start shifting profits from Bitcoin to other assets, it’s a sign that altcoins are showing strength. In recent months, BTC has performed strongly, and the market seems somewhat exhausted, while the infusion of new liquidity is changing this pattern.

The Real Opportunities Are Not in the Spotlight

Many people chase the most talked-about projects in the market, but the funds that are truly prepared have already begun quietly accumulating in less popular corners. If this market turning point is genuine and not just a rebound, then those assets that have quietly completed their positions are more likely to outperform the market in the upcoming rally. The key is to observe the true flow of funds, rather than being led by public opinion.