The decrease in Bitcoin (BTC) dominance may signal the approach of an altcoin season. Swissblock shares insights on the potential rise of altcoins.
Declining Bitcoin Dominance
The recent decline in Bitcoin's dominance from 65.3% to 62% may indicate rising positive sentiment in the altcoin sector. While the altcoin season index still reflects a Bitcoin season, signs suggest a possible change.
Altcoin Growth and Predictions
Swissblock stated, "First leg of Altseason incoming. Last time we got this confirmation was February and November of 2024." The increase in the number of altcoins above the 100-day Simple Moving Average supports these positive expectations.
Capital Rotation and Its Impact
The decline in Tether's USDT dominance from 6% to 4.5% over the past three weeks indicates capital rotation from BTC to the altcoin sector, confirmed by the rebound in altcoin market cap, excluding BTC and Ethereum, from over $600 billion to over $900 billion.
Despite signs of increasing altcoins and the decrease in BTC dominance, the current altcoin season index indicates a continued BTC season. However, some altcoins like Monero, Sui, and Tron show stronger performance and may interest investors.
