Bitcoin’s rise above $106,000 triggered a powerful rally across major Altcoins and DeFi tokens.
XRP, Starknet, and UNI led double-digit gains as crypto market confidence returned.
Growing DeFi deposits and falling Bitcoin dominance signaled renewed investor risk appetite.
Bitcoin price recently surged past the $106,000 mark. Previous support around $99,000 had held during a period of weakness, and the rebound has drawn fresh interest from both retail and institutional investors. According to data, Bitcoin rose by about 4% in a single day, climbing to around $106,000, while the total global cryptocurrency market value surged above $3.5 trillion. The broader market cap rose approximately 4.3% in the same period.
Two key factors appear to have reignited risk sentiment. One is renewed optimism in the US economy following progress toward ending the government shutdown. The other is improved liquidity conditions in financial markets. These developments made risk assets more attractive, and that included digital tokens beyond Bitcoin.
As BTC climbed, the dominance of Bitcoin relative to the rest of the market declined. In other words, Bitcoin’s share of the total crypto market dropped to around 59% (or in some reports 57 %), from higher levels only days before. A falling dominance often signals that capital is rotating out of Bitcoin and into smaller or alternative tokens (commonly called altcoins).
At the same time, decentralized finance (DeFi) protocols posted improving metrics. Total value locked (TVL) across DeFi systems rose to around $142.8 billion, assisted by strong flows and networks such as the Starknet Bridge and Sui ecosystem. This increase in deposits shows confidence in the infrastructure, not just price speculation.
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Several altcoins have posted double-digit gains during this rebound. Among them, XRP rose more than 12 % in 24 hours, reclaiming the $2.50 level. Both Starknet (STRK) and World Liberty Financial (WLFI) recorded even larger moves. Other names such as XLM, HBAR, UNI, AAVE, LINK, LTC, and ADA also saw strong gains, with some in the double-digit bracket and others growing by mid-single digits.
These moves display a broad shift. Capital is not simply tracking Bitcoin upward, but is actively betting on alternative tokens and emerging sectors. The fact that the market’s “altcoin season” indicator rose from the low-20s to the mid-30s confirms that altcoins are outperforming Bitcoin in relative terms.
On-chain and derivatives data offer a nuanced view of the rally. Open interest (OI) in futures markets for altcoins such as XRP, LTC, and LINK rose significantly, signalling that more capital entered those trades alongside spot price gains. OI-adjusted cumulative volume delta for many tokens (excluding some outliers like ZEC and BCH) was negative, showing that some of the rally may have been spurred on by short-covering or speculative flows.
Meanwhile, options data show that Bitcoin still carries a put-bias across many maturities. In contrast, in the case of Ethereum (ETH), call options for the January expiry were trading at a premium over puts, which hints at a somewhat more bullish stance among derivatives traders for ether than for Bitcoin.
This mixed picture suggests that while the rally is broad, caution remains. The influx of capital is real, but the nature of that capital may be more speculative than structural in some cases.
Two sectoral themes stand out. First, layer-2 networks and DeFi infrastructure are gaining momentum. The rapid growth in TVL and deposit flows into bridges such as Starknet implies that users are again trusting these systems with capital, not just trading tokens. The apparent inflows in these networks support the idea that some altcoins are emerging on a solid fundamental footing.
Second, payment tokens and networks with large retail exposure are benefiting from renewed liquidity and risk appetite. Tokens such as XRP, XLM, and HBAR are particularly visible in retail communities. When macro events hint at returning liquidity or retail capital (such as stimulus or dividend prospects), these tokens often move earlier and harder.
The resurgence of risk appetite in crypto partly aligns with broader macro developments. As the US Senate moved toward passing a bill to end the government shutdown, market confidence improved significantly. That improvement in sentiment spilled over into risk assets, such as cryptocurrencies. In this environment, Bitcoin’s break above $106,000 reflected not only technical strength but also the influence of macro stability.
Parallel to that, discussions of a potential US “tariff dividend” of around $2,000 for most Americans have heightened expectations of additional retail liquidity. Historically, such stimulus-oriented flows have triggered speculative moves in risk assets, and the crypto market appears to be riding a similar dynamic.
Bitcoin’s reclaim of the $106,000–$107,800 band is critical. Holding above that zone would support further rotation into altcoins and sustain bullish sentiment. If these assets fail to hold profits above double digits, the risk of re-dominance by Bitcoin increases.
Watching out Bitcoin’s dominance ratio and DeFi TVL trends will provide insight into whether this move is durable or a short-term bounce.
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Bitcoin’s move past $106,000 has notably shifted the crypto market dynamic. The decline in Bitcoin dominance, rise in DeFi TVL, and broad double-digit gains across select altcoins all point to renewed speculative strength and improved risk appetite. Tokens like XRP, STRK, WLFI, and various infrastructure and payment coins are leading the charge.
This moment reflects not only a price bounce in Bitcoin, but also a broader rotation of capital into altcoins and ecosystems. Whether this momentum sustains will depend on macro factors as well as whether on-chain and derivatives signals translate into sustained engagement rather than transient hype.
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