The price of Bitcoin (Bitcoin USD) continues to fluctuate near the $67,200 level after a week of price movements in a narrow range. However, its long-standing dominance in the broader cryptocurrency market is now in decline.
New data from CoinGecko reveals that the total market capitalization of cryptocurrencies has surpassed $2.38 trillion, while Bitcoin’s dominance has fallen below 59% and currently stands at 58.82%.
This gradual pullback coincides with a sudden acceleration in Ethereum’s momentum, which rose +1.1% overnight and into early Monday morning trading, while Bitcoin is sideways with a decline in trading volume.
The fundamental change in the data indicates that institutional funds could be preparing for a massive capital turnover in the crypto market, which could herald the start of an alt season.
What does a decline in channel dominance actually show?
The decline in market dominance to 58.48% represents a remarkable calm following the highs recorded in mid-2025, when Bitcoin controlled approximately 66% of total crypto investors’ wealth.
Tom Lee, head of Ethereum treasury firm Bitmine, recently noted that this gradual market pressure would eventually lead to a violent V-shaped rally in the closely watched ETH/BTC pair.
BREAKUP
TOM LEE JUST SAID: "THE CRYPTO BOTTOM IS IN PLACE AND IT’S ABOUT TO GO PARABOLIC"
HE ALSO SAYS THAT $BTC AND $ETH WILL HAVE ATH THIS YEAR
HE DEFINITELY KNOWS SOMETHING!! pic.twitter.com/XxH5RgPzH7– ᴛʀᴀᴄᴇʀ (@DeFiTracer) March 7, 2026
Current metrics of exchange flows support the hypothesis that liquidity is moving between ecosystems rather than leaving the crypto market entirely. Recently, $31.6 million worth of Ethereum left centralized exchanges in one day, reducing secondary supply as dominance numbers declined.
This is exactly the kind of localized supply shock that typically precedes a fundamental decoupling phase in Ethereum. But the situation is not entirely perfect for altcoin bulls.
Analysts like Kyle Redhead see the on-chain migration of traditional assets absolutely in Ethereum’s favor, but the extremely high funding rates suggest that retail long positions are still plentiful, hinting that the bottom may not have been reached yet.
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Bitcoin/USD Price Forecast: Can BTC Hold $67,000 as Dominance Fades?
Bitcoin USD is going through a consolidation phase between $64,000 and $72,000, creating an extended swing range that is slowly bringing down the active trading volume of the underlying asset. This is despite the fact that total reserves have clearly disappeared from spot exchanges, sparking intense debate among traders over whether a huge supply shock would occur.
If the channel’s current technical support holds at $66,500, Bitcoin may still be able to gather enough positional liquidity to aggressively retest the psychological barrier of $70,000.
But if this bottom collapses under the weight of capital flowing into altcoins, the market structure will quickly weaken. In this bearish scenario, the $64,000 level becomes the immediate near-term target, closely followed by deeper institutional demand zones lurking near $61,000.
The crucial level to watch closely is 58% on the Dominance Barometer chart, which can ultimately determine whether Bitcoin prices overshoot or completely collapse.
Ethereum ETF Inflows Challenge Bitcoin’s Liquidity Monopoly
Institutional interest in Ethereum is growing as rising market indicators point to increased inflows into exchange-traded funds (ETFs). Last week ended with positive inflows of around $20 million across multiple Ethereum ETF products, with BlackRock, Grayscale and Fidelity accounting for the majority of that volume, according to CoinGlass data.
FalconX analysts note that Ethereum’s technological advantages in tokenized assets and yield opportunities are attracting new investments that might previously have flowed into Bitcoin ETFs.
To confirm the disengagement, the ETH/BTC pair needs to surpass the 0.035 level with high trading volume, as it is currently trading at 0.02939. If the “whales” manage to reclaim the vital support of USD 2,000, bullish momentum could begin to form.
However, if the ratio fails to rise above 0.035 and the $2,000 level cannot be reclaimed, this may only be a temporary trend, with the $1,800 support level potentially becoming the likely target.
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Bitcoin Dominance Falls to 58%: Has Smart Capital Started Shifting to Ethereum? appeared first on Cryptonews Arabic.
