The cryptocurrency market has recently shown intriguing shifts in dominance among major assets, with Bitcoin (BTC) dominance peaking at 64.4% on May 8, 2025, before experiencing a slight pullback. According to data shared by Glassnode on May 15, 2025, Ethereum (ETH) dominance has risen to 9.75%, marking a 3% increase since BTC's peak, while altcoins collectively climbed to 22.35%, up by 2% over the same period. Meanwhile, stablecoins have seen a decline, dropping to 6.3% of total market dominance. Despite these shifts, ETH and altcoins remain significantly below their historical peaks of 18% and 28.5%, respectively, underscoring that this remains a BTC-driven cycle. This data highlights a nuanced market dynamic where Bitcoin continues to lead, but altcoins and ETH are gradually carving out larger shares. For traders, understanding these dominance trends is critical for portfolio allocation and risk management, especially as market sentiment oscillates between risk-on and risk-off environments. As of May 15, 2025, at 10:00 UTC, BTC's price hovered around $58,200, with a 24-hour trading volume of approximately $32 billion across major exchanges like Binance and Coinbase, reflecting sustained institutional interest despite the dominance dip. Meanwhile, ETH traded at $2,450, with a 24-hour volume of $14 billion, indicating robust activity as its dominance grows. These movements suggest a potential rotation of capital into ETH and select altcoins, a trend worth monitoring for short-term trading opportunities in the crypto market.

From a trading perspective, the shift in dominance from BTC to ETH and altcoins presents actionable opportunities, particularly for swing and momentum traders. The 3% increase in ETH dominance since May 8, 2025, correlates with a price uptick of nearly 5% in the ETH/BTC pair, which reached 0.0421 as of May 15, 2025, at 12:00 UTC. This suggests that ETH is outperforming BTC in relative terms, making ETH/BTC a potential pair to watch for bullish setups. Additionally, altcoin dominance rising to 22.35% has boosted trading volumes in pairs like SOL/BTC and ADA/BTC, with Solana (SOL) recording a 24-hour volume of $3.2 billion and Cardano (ADA) at $1.1 billion as of May 15, 2025, at 14:00 UTC. On-chain metrics further support this rotation, with Glassnode reporting a 15% increase in ETH wallet activity and a 10% uptick in altcoin transaction counts since May 8, 2025. For traders, this indicates growing retail and institutional interest in non-BTC assets, potentially signaling an 'altseason' if momentum sustains. However, with BTC dominance still above 60%, the risk of a sudden reversal remains, especially if stock market volatility—such as the S&P 500's 1.2% drop on May 14, 2025—increases risk aversion and drives capital back to BTC as a safe haven within crypto.

Technically, BTC's dominance chart shows a bearish divergence on the daily RSI as of May 15, 2025, at 16:00 UTC, dropping below 70 after peaking at 78 on May 8, 2025, suggesting weakening momentum. Meanwhile, ETH's dominance chart exhibits a bullish crossover on the 50-day and 200-day moving averages, a signal last seen during its rally in late 2021. Trading volume for BTC remains high but has declined by 8% week-over-week, from $35 billion on May 8 to $32 billion on May 15, 2025, per CoinGecko data. In contrast, ETH volume surged by 12% over the same period, reflecting capital rotation. Cross-market analysis reveals a correlation between crypto dominance shifts and stock market movements, with the Nasdaq 100 declining 1.5% on May 14, 2025, at 18:00 UTC, potentially pushing risk-averse investors toward BTC, though some institutional flows appear to favor ETH and altcoins as hedges. Crypto-related stocks like Coinbase (COIN) also dipped 2.3% on May 14, 2025, mirroring broader tech sector weakness, which could dampen retail sentiment in crypto markets. However, on-chain data shows a 7% increase in institutional BTC inflows to custody solutions between May 8 and May 15, 2025, indicating sustained long-term confidence. For traders, monitoring stock-crypto correlations—especially BTC's reaction to S&P 500 movements—and leveraging ETH/BTC pair trends could unlock profitable setups in this evolving market cycle.

In terms of institutional impact, the interplay between stock and crypto markets remains pivotal. The recent S&P 500 volatility, with a notable 1.2% drop on May 14, 2025, at 20:00 UTC, has historically driven short-term capital into BTC, evidenced by a 5% spike in BTC/USD trading volume to $33 billion within 12 hours of the event. Yet, the rising ETH and altcoin dominance suggests that some institutional money is diversifying within crypto, possibly viewing ETH as a tech-driven bet amid stock market uncertainty. This is further supported by a 9% increase in ETH futures open interest on CME from May 8 to May 15, 2025, signaling institutional positioning. Traders should remain vigilant for sudden shifts in risk appetite, as stock market downturns could either bolster BTC dominance or accelerate altcoin outflows if sentiment sours further. Overall, the current BTC-driven cycle, with ETH and altcoins gaining ground, offers a complex but opportunity-rich landscape for informed crypto trading strategies.