Altcoin Season Ignites as Bitcoin Takes Backseat in Crypto Rally

Forget Bitcoin's dominance—altcoins are stealing the spotlight with explosive gains while the OG crypto plays catch-up.

Market Rotation in Motion

Smaller cap tokens are posting triple-digit surges as capital floods into alternative blockchain projects. Ethereum leads the charge with DeFi protocols and NFT platforms driving unprecedented network activity.

Risk-On Sentiment Returns

Traders are dumping stablecoin positions and piling into speculative alt plays—because nothing says 'rational investing' like chasing tokens named after dog memes and breakfast foods.

Institutional players quietly accumulate Bitcoin positions while retail FOMO fuels the altcoin frenzy. The cycle continues—because apparently nobody learns.

Bitcoin’s market dominance recently saw a significant decline, igniting discussions about the onset of an altcoin season. Analyst Ash Crypto, in a recent statement, highlighted this shift as marking a new era favorable for altcoins. Weekly data shows a decrease to 57.60% in Bitcoin’s dominance, down from 61.72% at the beginning of the month, marking a 4.13% drop.

ContentsSignals of Decline in Bitcoin DominanceStrengthening Altcoin Season Expectations

Signals of Decline in Bitcoin Dominance

Ash Crypto pointed to this breakdown as a critical exit from the upward trend that had been ongoing since July 2022. Daily figures showed dominance slipping to 57.2% with a daily decrease of 3.29%. The monthly charts reflect a 6.69% decline, further strengthening expectations within the cryptocurrency market about an incremental shift in favor of altcoins.

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Analyst Michaël van de Poppe characterized the post-June decline from a peak of 66% as bearish divergence, suggesting a reversal towards altcoins while noting the possibility of short-lived strength in Bitcoin. Recent figures place bitcoin at $111,545, marking a 4.3% drop over the past month with daily losses hovering around 2.5%.

Strengthening Altcoin Season Expectations

In the market share distribution, Ethereum$4,640‘s share increased by 2.8% reaching 14.5% over the last 24 hours. Collectively, other cryptocurrencies saw a market share increase of 0.4%, rising to 28.3%. According to CoinMarketCap, the total market cap for altcoins has climbed from approximately $1.4 trillion at the end of July to NEAR $1.8 trillion in recent days. A significant turning point, known as the end of Bitcoin Season, might occur within this month, believes Chiefy.

Supporting signals for altcoin momentum are emerging, as noted by crypto Goos, who reported that the Altcoin Season Index reached 71, approaching the official season mark of 75. This index, rising above 90 at the end of 2024, had undergone a decline by March, entering a gradual recovery phase between May and August. Axel Adler from CryptoQuant illustrates a positive outlook by focusing on the declining altcoin reserves on exchanges, with an average outflow of 1.6 billion dollars, which is below the annual average of 2.5 billion dollars. Similar accumulation phases in the past have been forerunners to market rallies.

Ito Shimotsuma speculated that Bitcoin dominance could fall below 50%, presenting one of the weakest technical patterns in the market. Furthermore, Raoul Pal suggested that the ongoing uptrend since December 2024 had peaked, as DeMark indicators signal exhaustion, implying a transitional phase toward altcoins.

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