Volatility calls grow as BTC dominance dips and Bitcoin, altcoin correlation weakens

Pudgy Penguins (PENGU) was among todays biggest altcoin gainers with 25% in the last 24 hours. The TRUMP token, a memecoin associated with President Donald Trump, also gained 11.4% over the same period. Most tokens in the top ten bar stablecoins are charting daily gains between 1.5% and 10%.

Correlation between BTC and altcoins is weak

Data from the Correlation Heatmap, shared by Alphractal in a Telegram group, shows that the average correlation between altcoins and BTC has turned negative in some cases.

“In other words, altcoins are no longer following Bitcoins movements,” Alphractal said. “Historically, low correlation is a red flag. It often precedes periods of high volatility and mass liquidations—whether from shorts or longs.”

This divergence could mean that while Bitcoins price is cooling off, other coins behave independently to tread on more volatile ground in either direction in the market.

Last weekend was lacklustre for most Bitcoin traders, with the coin trading sideways for most of Saturday and Sunday. However, late Sunday evening in European trading hours, the coin briefly plunged to just above $116,000 after a supposed “liquidity grab.”

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