Recent data indicates that Bitcoin trading volumes sharply fell, potentially foreshadowing market shifts towards altcoins.
Decrease in Bitcoin Trading Volume
On Saturday, Bitcoin's trading volume dropped by 28%, sparking discussions about a market change towards altcoins. However, Bitcoin's market cap remained stable with a slight increase of 1.09%, reaching $2.34 trillion.
Rise in Altcoin Capitalization
Over the last 24 hours, altcoin trading volume increased by 27.25%, reaching $65.16 billion, with Bitcoin's price at $117,582.66 at press time. Bitcoin's fully diluted valuation now sits at $2.46 trillion with a supply of 19.9 million BTC and a volume-to-market-cap ratio of 2.71%.
Approaching Altcoin Season
The decline in Bitcoin's dominance by about 5% on the monthly chart could signal the beginning of an altcoin season, where capital rotates out of Bitcoin into other cryptocurrencies. According to Coinbase Institutional, the market is nearing the threshold for a full-scale altcoin season as September approaches.
Thus, despite the decline in Bitcoin trading volumes, there is rising interest in altcoins, potentially leading to a new wave of investments in this direction.
