Amid the multi-month downtrend that has stifled price action across the crypto market, the Bitcoin dominance ratio has continued to decline over the past few months. Since July 2025, Bitcoin’s dominance has collapsed from 65.2% to the current ratio of 59.3%, representing a 9% decline in seven months.
Interestingly, as consolidation emerges, the Bitcoin dominance now appears to be compressing on the weekly timeline, hinting at a potential volatility spike to the upside or downside. Notably, if the dominance drops to the downside, XRP could “rip,” according to historical price action.
This is according to a recent market exposition from CryptoInsightUK, a notable chartist. For context, Bitcoin appears to be suffering some of the steepest declines in the ongoing downward trend that has persisted over the past few months.
Notably, the altcoin market cap (TOTAL2 on TradingView) has dropped 17.7% from $1.15 trillion in July 2025 to the current figure of $946 billion. However, Bitcoin’s market cap has declined by a more substantial 35% from $2.13 trillion to $1.38 trillion today. This confirms that Bitcoin has underperformed compared to altcoins.
As a result, the Bitcoin dominance ratio has continued to see declines since July 2025, with altcoins holding up better than the premier crypto asset during the downtrend. Specifically, Bitcoin’s dominance stood at 65.2% in July 2025. However, today, it has dropped to 59.3%, marking a 9% crash.
Meanwhile, CryptoInsightUK confirmed that following this crash, the Bitcoin dominance ratio has now begun consolidating, leading to compression, as indicated by the tightening of the Bollinger Bands.
According to the analyst, the Bollinger Bands around Bitcoin’s dominance appear to be the tightest they have ever been in history. This points to an unprecedented compression scale. He expects the compression to also pick up on the monthly timeframe.
Typically, when the Bollinger Bands tighten in this manner, what follows is increased volatility to either the upside or the downside. CryptoInsightUK remains uncertain which direction it could take, but he stressed that if it resolves to the downside, altcoins like XRP could skyrocket.
In a subsequent disclosure, he confirmed that when the Bitcoin dominance collapsed about 11% from 61.53% to 54.56% in late 2024, this coincided with an XRP spike of 490% to $2.9 within the same period. This confirms the suggestion that a decline in the Bitcoin dominance ratio could translate to a spike in XRP’s price.
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