The crypto market is witnessing a notable shift. Bitcoin (BTC) simply reached a brand new all-time excessive (ATH) in July 2025. Nevertheless, on the identical time, the Bitcoin Dominance index (BTC.D) dropped from 66% to 64.5%.
This decline is giving altcoin traders a motive to be optimistic. The whole market capitalization of altcoins is now rising sooner than Bitcoin’s.
Altcoin Market Cap Rises, Analysts Predict Altcoin Season
In line with TradingView knowledge, the altcoin market cap (TOTAL2) has recovered practically 10% since early July. It just lately surpassed $1.2 trillion.
In the meantime, Bitcoin’s Dominance has dropped from 66% to 64.5%, essentially the most important drop since Might.
Notably, on July 9, when Bitcoin reached a new ATH above $111,000, BTC.D continued to fall. This implies that altcoins are gaining market cap sooner than Bitcoin, a uncommon and long-awaited signal for altcoin traders.
Moreover, pseudonymous crypto analyst Grasp of Crypto said that Bitcoin doesn’t have to crash for an altcoin season to start. As a substitute, if BTC’s value strikes sideways whereas dominance retains falling, it may create the proper circumstances for altcoins — particularly low- and mid-cap tokens — to rally.
He additionally identified that the intensity of the altcoin season is dependent upon how deeply BTC.D drops, particularly regarding the EMA50 and EMA200 ranges.
“If BTC.D falls under the 50-day EMA → we’d see a mini alt season (low/mid caps pump). If it breaks the 200-day EMA → prepare for a serious alt season (ETH, SOL, memes go wild),” Grasp of Crypto predicted.
Stablecoins Rise on Exchanges, Buyers Loaded With ‘Dry Powder’
One other key issue is the excessive quantity of stablecoins held on exchanges, typically known as “dry powder”, able to ignite the market.
In line with CryptoQuant analyst oinonen_t, USDT and USDC reserves on Binance have constantly stayed excessive, exceeding $31 billion in whole worth. In the meantime, Bitcoin reserves on exchanges are declining.
These two components point out that traders are getting ready for an altcoin season.
“So what’s behind the decoupling of stablecoin and Bitcoin reserves? Initially, throughout a bull cycle, Bitcoin models are normally withdrawn from exchanges into non-public wallets and saved long-term in chilly wallets. Then again, the rising stablecoin reserves replicate sidelined capital — unused ‘dry powder’ able to deploy,” oinonen_t explained.
Nevertheless, repeated predictions of an altcoin season over the previous few years have become one thing just like the “boy who cried wolf,” leaving traders skeptical and cautious.
A latest report by BeInCrypto also pointed to growing doubt amongst retail traders. Nonetheless, well-known market analyst Michaël van de Poppe believes that skepticism is a pure a part of a bull cycle.
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