Recent market stability in the crypto space has sparked activity, with Bitcoin whales shedding holdings while altcoin prices show resilience. On-chain data from Santiment and analyst DaanCrypto indicate a shift in momentum. 68.7% of Bitcoin’s circulating supply, held by large wallets between 10 to 10,000 BTC, have recently offloaded 17,554 BTC, hinting at short-term repositioning rather than significant distribution. This follows a period of substantial accumulation from these whales since January. Historical data suggests such whale activity often precedes minor market tops or rebalancing periods, particularly when funding rates and derivatives leverage are high. 318,000 BTC held by large holders during the current phase reflects this trend. Bitcoin’s dominance ($BTC.D) is currently facing a “big retest” after a sharp decline, creating favorable conditions for altcoins to reclaim market share. This surge follows a period of sustained performance for alternative cryptocurrencies, potentially setting the stage for continued outperformance in a stable market environment if sentiment stabilizes. Despite this momentum, Bitcoin dominance could regain prominence if it climbs toward previous high levels above 66%. Market correlations between Bitcoin and U.S. equities remain strong at 0.33, highlighting the asset’s close connection to risk-on trends. However, the correlation with gold and the U.S. dollar is weak, confirming Bitcoin’s position as a potential alternative investment rather than a traditional hedge in today’s volatile market. Overall, the crypto market appears to be entering a transition phase where altcoins are gaining ground while consolidation remains. This rotation suggests that Bitcoin may experience renewed directional movements in the near future.