Bitcoin Rebound Sparks Altcoin Rally: Bittensor, Zcash Lead

Bitcoin’s impressive weekend performance, climbing from $105,000 to an intraday high of $110,000, has catalyzed a distinct shift in cryptocurrency market dynamics. The rebound came as macroeconomic and geopolitical conditions showed signs of improvement, setting the stage for renewed momentum across digital assets. According to Shawn Young, chief analyst of MEXC Research, “Bitcoin’s rally has renewed market confidence. Traders are now rotating capital into high beta assets to seek short-term outperformance,” signaling a clear comeback in speculative appetite among market participants.

The rotation reflects typical market cycles where shifting narratives and profit-taking after brief rallies redirect capital toward altcoins showing fresh momentum. This pattern has become particularly evident in the contrasting performances of Bittensor (TAO) and Zcash (ZEC) compared to BNB. While Bitcoin’s market dominance held steady near 60%, indicating investors remain hesitant to move significantly away from the leading cryptocurrency, the selective strength in specific altcoins suggests a more nuanced market recovery than broad-based rallies.

Bittensor emerged as the standout performer, rising 12% over the past 24 hours and extending gains from last week’s 11.1% increase. The AI-linked cryptocurrency has demonstrated consistent strength amid the market rotation, positioning itself as a beneficiary of renewed interest in high-beta assets. Similarly, Zcash advanced 10.2%, effectively trimming its seven-day loss of 11.4% according to CoinGecko data, indicating a potential reversal in fortune for the privacy-focused token.

Meanwhile, BNB, last week’s top performer, has taken a backseat despite a modest 4.1% daily uptick. The token has lost significant steam with a 12.3% decline over the week as traders book profits and reallocate capital toward emerging opportunities. This contrast highlights the fluid nature of cryptocurrency markets, where leadership can change rapidly as investor preferences evolve and new narratives gain traction.

Market experts maintain a cautiously optimistic stance while emphasizing that several conditions must be met for the current momentum to sustain. Shivam Thakral, CEO of BuyUcoin, told Decrypt that “over the next few weeks, the focus will shift to whether Bitcoin can hold its key support levels. If it does, we could see momentum return, especially around narratives like AI, restaking, and tokenized assets.” This perspective underscores the importance of Bitcoin’s stability as a foundation for broader market recovery.

Young from MEXC Research expects the trend toward selective strength to continue, noting that “altcoins are now entering a phase where selective strength matters more than broad-based rallies. The next leg would most likely depend on capital inflows extending beyond major Layer-1s into DeFi and AI-linked projects.” This analysis suggests that the market may be transitioning to a more discerning phase where project fundamentals and specific use cases drive performance rather than general market sentiment.

Despite the positive short-term developments, experts who previously spoke to Decrypt maintain that the macro and geopolitical outlook needs to cool before an explosive uptrend emerges. The persistent 60% Bitcoin dominance figure indicates that while traders are willing to take selective risks in altcoins, the broader investor base remains anchored to the market leader, reflecting ongoing caution about the sustainability of the current rally.