Altcoins Eye Momentum as Bitcoin Rockets Beyond $118K
11/7/2025
Bitcoin’s recent surge past $118,000 has reignited optimism across crypto markets, raising the question: will major altcoins follow BTC’s lead, or will bitcoin continue to dominate the rally on its own?
“The BTC breakout marks a regime shift, and we expect altcoin dispersion to rise from here,” said one trader, reflecting a growing consensus among trading desks that major tokens could soon see bigger moves.
Historically, when bitcoin hits new highs, it often signals fresh liquidity flowing into crypto markets, with funds gradually rotating from BTC into large-cap altcoins. Early signs suggest that shift may already be starting.
Altcoins Start to Respond
Ether (ETH) is pushing toward its yearly highs, while Solana’s SOL has climbed back above the crucial $160 level. Meanwhile, mid-cap tokens like Shiba Inu (SHIB), Hyperliquid’s HYPE, and Avalanche’s AVAX have posted double-digit gains over the past 24 hours.
Rick Maeda, Research Analyst at Presto Research, explained to CoinDesk:
“Bitcoin’s break above its all-time high is a powerful liquidity signal that tends to rotate capital into other major crypto assets. Historically, when BTC reaches a new high, liquidity spreads across the broader market. We’re already seeing funds move into large-cap tokens like ETH, SOL, and XRP, driven by renewed retail activity and institutional portfolio shifts. The BTC breakout signals a new phase for the market, and we expect more altcoin dispersion ahead.”
Solana, XRP, and Ethereum Under the Spotlight
Solana remains a standout, known for its high-beta nature and strong narratives attracting retail investors. Liquidity continues to flow through Solana’s ecosystem thanks to active protocols and a wave of new token launches, particularly in the memecoin space, Maeda noted.
Meanwhile, XRP, which often trades more on sentiment and speculative catalysts than fundamentals, is attracting fresh interest. Traders are looking again at its legal developments and historical price relationships. As BTC volatility stabilizes, tokens like XRP and Cardano’s ADA often benefit from risk rotation.
Ethereum, meanwhile, is enjoying robust inflows into ETF products and growing expectations of institutional rebalancing. With spot ETH vehicles gaining popularity and activity rising in Layer 2 ecosystems, ETH is positioning itself as one of the main beneficiaries of the current market rally.
Jeff Mei, COO at BTSE, told CoinDesk:
“ETH could soon reclaim the $3,200 mark, while SOL has a clear path back toward $200. This time, the entire market seems to be lifting together, with major tokens like SOL, ETH, and XRP climbing back toward highs seen earlier in January.”
Regulatory Tailwinds Fuel Optimism
Nick Ruck, Director at LVRG Research, shared similar optimism:
“As bitcoin reaches new highs around $116,000, altcoins are lining up to ride the wave. Ethereum ETF inflows are hitting record levels, while recent regulatory changes, like the removal of a crypto broker tax rule in the U.S., are creating more room for DeFi growth.”
Ruck added that blue-chip tokens such as SOL and XRP are primed for further upside once bitcoin volatility eases and BTC establishes a new support level.
For now, traders are watching closely to see whether bitcoin’s record run will trigger a broader altcoin rally, potentially marking the beginning of crypto’s next major bull phase.
