The crypto market is witnessing a notable shift. Bitcoin (BTC) simply reached a brand new all-time excessive (ATH) in July 2025. However, 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 whole market capitalization of altcoins is now rising sooner than Bitcoin’s.
Altcoin Market Cap Rises, Analysts Predict Altcoin Season
According to TradingView knowledge, the altcoin market cap (TOTAL2) has recovered practically 10% since early July. It not too long ago surpassed $1.2 trillion.
Meanwhile, Bitcoin’s Dominance has dropped from 66% to 64.5%, probably the most vital drop since May.
Notably, on July 9, when Bitcoin reached a 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.
Additionally, pseudonymous crypto analyst Master of Crypto said that Bitcoin doesn’t must crash for an altcoin season to start. Instead, if BTC’s value strikes sideways whereas dominance retains falling, it might create the right situations for altcoins — particularly low- and mid-cap tokens — to rally.
He additionally identified that the intensity of the altcoin season is determined by how deeply BTC.D drops, particularly regarding the EMA50 and EMA200 ranges.
“If BTC.D falls below the 50-day EMA → we might see a mini alt season (low/mid caps pump). If it breaks the 200-day EMA → get ready for a major alt season (ETH, SOL, memes go wild),” Master of Crypto predicted.
Stablecoins Rise on Exchanges, Investors Loaded With ‘Dry Powder’
Another key issue is the excessive quantity of stablecoins held on exchanges, typically known as “dry powder”, able to ignite the market.
According to CryptoQuant analyst oinonen_t, USDT and USDC reserves on Binance have persistently stayed excessive, exceeding $31 billion in whole worth. Meanwhile, 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? First of all, during a bull cycle, Bitcoin units are usually withdrawn from exchanges into private wallets and stored long-term in cold wallets. On the other hand, the growing stablecoin reserves reflect sidelined capital — unused ‘dry powder’ ready to deploy,” oinonen_t explained.
However, repeated predictions of an altcoin season over the previous few years have become one thing just like the “boy who cried wolf,” leaving buyers skeptical and cautious.
A latest report by BeInCrypto also pointed to growing doubt amongst retail buyers. Still, well-known market analyst Michaël van de Poppe believes that skepticism is a pure a part of a bull cycle.
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