Bitcoin Soars Above $118K, Setting the Stage for Altcoin Rotation
11/7/2025
Bitcoin’s decisive surge past $118,000 has injected fresh momentum into crypto markets, sparking speculation about whether altcoins will follow suit or remain in bitcoin’s shadow.
“The BTC breakout marks a regime shift, and we expect altcoin dispersion to rise from here,” one trader said, echoing a growing sentiment among trading desks expecting broader moves in major tokens.
Historically, new highs in bitcoin act as a liquidity magnet, pulling sidelined capital back into crypto and eventually rotating into large-cap altcoins. Early signs suggest that rotation may already be underway.
Altcoins Begin to Stir
Ethereum (ETH) is testing yearly highs, Solana’s SOL has reclaimed key levels above $160, and mid-cap tokens like Shiba Inu (SHIB), Hyperliquid’s HYPE, and Avalanche’s AVAX have seen double-digit gains over the past 24 hours.
Rick Maeda, Research Analyst at Presto Research, told CoinDesk:
“Bitcoin’s break above its all-time high serves as a liquidity trigger that often flows into other major crypto assets. Historically, when BTC sets a new high, it tends to spread liquidity across the broader market. We’re already seeing capital move into large-cap tokens like ETH, SOL, and XRP, driven by both retail excitement and institutional rebalancing.”
Focus on Solana, XRP, and Ethereum
Solana remains a key watch for traders due to its high-beta profile, strong narrative momentum, and continued activity across native protocols, particularly fueled by new token launches like the latest memecoin wave.
Meanwhile, XRP—often swayed more by sentiment and legal headlines than fundamentals—is drawing renewed interest as traders look for assets with historical correlations and potential legal clarity. As bitcoin volatility cools, assets like XRP and Cardano’s ADA tend to benefit from a rotation into higher-risk bets.
Ethereum stands out as the institutional favorite, buoyed by increasing ETF inflows, strong spot product interest, and a rebound in Layer 2 ecosystem activity.
Jeff Mei, COO at BTSE, shared with CoinDesk:
“ETH could reclaim $3,200 soon, and SOL has room to move back toward $200. This time, we’re seeing broad-based strength, with major tokens like SOL, ETH, and XRP climbing back toward levels seen earlier this year.”
Regulatory Winds Bolster Outlook
Nick Ruck, Director at LVRG Research, added:
“As bitcoin crosses new highs around $116,000, altcoins are positioning to ride the bullish wave. Ethereum ETF inflows are hitting record levels, and U.S. regulators removing the crypto broker tax rule is a major tailwind for DeFi growth.”
He noted that blue-chip tokens like SOL and XRP could rally further as bitcoin stabilizes and the market seeks fresh opportunities beyond BTC.
The Road Ahead
With bitcoin firmly above previous highs and volatility easing, the market appears primed for potential altcoin rotation. Traders are watching closely to see if this breakout triggers the start of a broader altseason, or whether bitcoin will remain the sole driver of crypto’s current momentum.
