Bitcoin Hits $106.5K, Altcoins Surge in Crypto Rally

Bitcoin’s journey over the past week has been marked by significant volatility, beginning with a painful downturn that saw the primary cryptocurrency rejected at $111,000 on Monday morning and pushed south to under $104,000. The bearish pressure intensified throughout the week, driving BTC below $100,000 for the first time since June and establishing a weekly low of just under $99,000 on Tuesday. Although brief rebounds occurred, each recovery attempt was met with resistance, particularly around the $104,000 level, keeping Bitcoin in five-digit price territory through much of the week.

The current recovery phase began to gain momentum on Friday as Bitcoin jumped toward $104,000 once again, establishing a foundation around $101,000-$102,000 during the weekend. The most significant move came on Sunday afternoon following US President Trump’s promise of a tariff dividend to almost all Americans of at least $2,000, which provided the catalyst for renewed bullish momentum. Bitcoin initially tapped $104,000 before continuing its climb on Monday morning, ultimately exceeding $106,000 and reaching a multi-day peak of just over $106,500 earlier today.

With this recovery, Bitcoin’s market cap has reclaimed the $2.1 trillion level, though notably, its dominance over alternative cryptocurrencies has declined to 57.5%. This decreasing dominance during market resurgence indicates that altcoins have been performing even better than Bitcoin, suggesting a broadening of the rally beyond the flagship cryptocurrency.

While Bitcoin’s recovery has been substantial, the real story of the past 24 hours has been the exceptional performance of alternative cryptocurrencies. XRP emerged as a standout performer, soaring by more than 12% daily to reclaim the $2.50 level, demonstrating strong momentum among major digital assets. Ethereum also posted significant gains, reclaiming the $3,600 level following a 6.5% increase, while Solana approached $170 after a 7% pump, showing renewed strength in the smart contract platform sector.

The rally extended across numerous other digital assets, with Cardano (ADA), Hyperliquid (HYPE), Chainlink (LINK), Zcash (ZEC), Bitcoin Cash (BCH), and Litecoin (LTC) all posting substantial gains and trading well in the green. The breadth of the rally was particularly evident in the double-digit price gainers club, which included Aptos (APT), Ethena (ENA), Aave (AAVE), Stellar (XLM), Hedera (HBAR), Render (RENDER), Uniswap (UNI), Pump.fun (PUMP), and Wall Street Games (WLFI).

WLFI actually led the entire market with a massive 31% surge, highlighting the risk-on sentiment that has returned to cryptocurrency markets. The collective performance of these altcoins has contributed significantly to the overall market recovery, with the total crypto market cap adding $170 billion in a single day to reach $3.680 trillion, marking one of the strongest daily performances in recent weeks.

The timing of this cryptocurrency market resurgence appears closely tied to political developments in the United States, specifically President Trump’s promised $2,000 tariff dividend announcement. This policy proposal, coming during a period of market uncertainty, provided the catalyst needed to reverse the previous week’s bearish sentiment and trigger broad-based buying across both Bitcoin and alternative cryptocurrencies.

The market’s response to political announcements highlights the growing sensitivity of cryptocurrency markets to traditional financial and political developments. The fact that Trump’s tariff dividend promise could catalyze such a significant market move underscores how cryptocurrency investors are increasingly viewing digital assets through the lens of macroeconomic policy and its potential impact on investor confidence and capital flows.

Looking forward, the decreasing Bitcoin dominance during this recovery phase suggests that investors may be rotating into altcoins in search of higher returns, a pattern that often characterizes the later stages of bullish moves. However, the sustainability of this rally will depend on whether the current momentum can overcome previous resistance levels, particularly for Bitcoin around the $111,000 mark where it faced rejection earlier in the week.