Bitcoin’s dominance is slipping again, and that has traders wondering whether the long-delayed altcoin season is finally around the corner. Crypto analyst Matthew Hyland says the recent action in Bitcoin looks less like a new leg higher and more like a “dead cat bounce in a downtrend.” If that’s true, it could spell both risk and opportunity for tokens like XRP (XRP-USD), which tend to move in rhythm with Bitcoin’s broader swings.
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Bitcoin’s Slide Creates Space for Altcoins
Hyland pointed out that Bitcoin’s dominance has dropped more than 5% since May, a shift that often signals early stages of rotation into other assets.
“The reason why you should have confidence in the altcoin price action is because the BTC Dominance chart looks bearish and has looked bearish for many weeks,” he wrote on X.
“The downtrend is favorable to continue; therefore, this relief rally has been a dead cat bounce in a downtrend,” he added.
This framing has traders bracing for what might come next. Historically, when Bitcoin dominance weakens after a long uptrend, liquidity trickles down to large-cap altcoins first. XRP has already shown signs of attempting a comeback after last week’s Swell-event slump, and if Bitcoin keeps losing ground, Ripple’s token could be next in line to catch renewed inflows.
Wall Street Influence Expands Market Volatility
Hyland also claimed that Bitcoin’s huge price swings might not be fully organic. “Over the past month, I’ve kind of just maintained the view that a lot of this was really just manipulation, essentially for Wall Street to set themselves up,” he said in a Saturday video.
If institutional activity is driving volatility, the pattern could extend to correlated assets like XRP. Historically, XRP tends to shadow Bitcoin’s macro direction, often amplifying both the upside and downside during periods of heavy leverage and liquidity shifts.
Market Rotation Shapes the New Trading Narrative
Bitcoin’s dominance now sits near 59.9%, its lowest level in months. The CoinMarketCap Altcoin Season Index is still stuck at 28 out of 100, meaning capital remains concentrated in Bitcoin. But if that metric continues to rise, it could mark a turning point in market psychology.
If history’s any guide, changes like this have a way of shaking things up for XRP. Despite Ripple’s strong fundamentals and a $500 million funding boost announced last week, the token has struggled to hold above $2.3–$2.4. A broader rotation into altcoins could give XRP the momentum it needs to reclaim higher ground, though the opposite is also true if Bitcoin’s “dead cat bounce” unravels further.
JPMorgan Forecast Lifts Long-Term Expectations
Not everyone sees doom ahead. In a separate note, JPMorgan (JPM) analysts said Bitcoin could reach $170,000 within a year, citing signs of stabilization after October’s record liquidation event. “The message from the recent stabilization is that deleveraging in perpetual futures is likely behind us,” they wrote, suggesting calmer conditions could return.
That optimism could lift sentiment across digital assets. If Bitcoin steadies above $100,000, XRP and other large-caps could benefit from renewed confidence, even if the near-term remains volatile.
Investors can track the prices of their favorite cryptos on the TipRanks Cryptocurrency Center. Click on the image below to find out more.
