The crypto market is witnessing a notable shift. Bitcoin (BTC) simply reached a brand new all-time excessive (ATH) in July 2025. Nonetheless, on the similar time, the Bitcoin Dominance index (BTC.D) dropped from 66% to 64.5%.
This decline is giving altcoin buyers a motive to be optimistic. The overall market capitalization of altcoins is now rising sooner than Bitcoin’s.
Altcoin Market Cap Rises, Analysts Predict Altcoin Season
Based on 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 vital drop since Could.
Notably, on July 9, when Bitcoin reached a brand new ATH above $111,000, BTC.D continued to fall. This means that altcoins are gaining market cap sooner than Bitcoin, a uncommon and long-awaited signal for altcoin buyers.
Moreover, pseudonymous crypto analyst Grasp of Crypto mentioned that Bitcoin doesn’t must crash for an altcoin season to start. As a substitute, if BTC’s worth 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 depth of the altcoin season will depend on how deeply BTC.D drops, particularly in regards to the EMA50 and EMA200 ranges.
“If BTC.D falls beneath 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, Traders Loaded With ‘Dry Powder’
One other key issue is the excessive quantity of stablecoins held on exchanges, usually referred to as “dry powder”, able to ignite the market.
Based on CryptoQuant analyst oinonen_t, USDT and USDC reserves on Binance have persistently stayed excessive, exceeding $31 billion in complete worth. In the meantime, Bitcoin reserves on exchanges are declining.
These two components point out that buyers 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 Initially, throughout a bull cycle, Bitcoin models are often withdrawn from exchanges into personal wallets and saved long-term in chilly wallets.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 defined.
Nonetheless, repeated predictions of an altcoin season over the previous few years have changed into one thing just like the “boy who cried wolf,” leaving buyers skeptical and cautious.
A latest report by BeInCrypto additionally pointed to rising doubt amongst retail buyers. 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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