The cryptocurrency market is witnessing a decline in Bitcoin dominance below 60%, pointing towards potential altcoin activation. This phenomenon is termed as 'altcoin season' when many altcoins start to outperform Bitcoin in returns.
Bitcoin Dominance Decline
Bitcoin dominance has fallen to 59.48%, its lowest point in more than four months. In mid-June, it was above 65%. This decline in dominance often precedes altcoin seasons, when investors shift their funds into other cryptocurrencies.
Altcoin Uptrend
According to Coinbase, trading activity and prices for altcoins have significantly risen in 2025, with market capitalization exceeding 1 trillion dollars. Altcoins are showing considerable growth amid improved liquidity and investor confidence. The return of interest in altcoins is also noted in the rise of the Altcoin Season Index, which has reached 44, higher than July's figure of below 25.
Outlook and Conclusions
The market is currently awaiting a strong signal that could attract new capital and trigger a full altcoin season. Setting new highs and positive trends in altcoin indices might indicate the likelihood of a significant altcoin rally in September. Institutional interest in cryptocurrencies like Ethereum is also anticipated in the near future.
The current state of the cryptocurrency market shows signs of a potential altcoin season with increasing activity and changes in Bitcoin dominance. Investors are closely monitoring further developments.
