Bitcoin Hits ATH, But Dominance Falls — Sign of Altcoin Season?

The cryptocurrency market is witnessing a notable change. Bitcoin (BTC) has just reached a new All-Time-High (ATH) in July 2025. However, simultaneously, the Bitcoin Dominance index (BTC.D) has dropped from 66% to 64.5%.

This decline is providing reasons for altcoin investors to be optimistic. The total market capital of altcoins is currently increasing faster than Bitcoin.

Altcoin market capital increases, analysts predict altcoin season

According to data from TradingView, the altcoin market capital (TOTAL2) has recovered nearly 10% since the beginning of July. Recently, it has surpassed 1.2 trillion USD.

Meanwhile, Bitcoin Dominance has decreased from 66% to 64.5%, the most significant drop since May.

Notably, on 07/09, when Bitcoin reached a new ATH above 111,000 USD, BTC.D continued to decline. This indicates that altcoins are gaining market capital faster than Bitcoin, a rare and long-awaited sign for altcoin investors.

Additionally, anonymous crypto analyst Master of Crypto stated that Bitcoin does not need to collapse for an altcoin season to begin. Instead, if BTC price remains stable while dominance continues to decrease, it could create perfect conditions for altcoins — especially low and medium market cap tokens — to surge strongly.

He also pointed out that the intensity of the altcoin season depends on the depth of BTC.D's decline, particularly in relation to EMA50 and EMA200 levels.

"If BTC.D drops below the 50-day EMA → we might see a small alt season (low/medium market cap tokens surging). If it breaks the 200-day EMA → get ready for a big alt season (ETH, SOL, meme tokens surging strongly)," Master of Crypto predicted.

Stablecoins increasing on exchanges, small investors ready with 'Dry Powder'

Another important factor is the large amount of stablecoins held on exchanges, often called "dry powder", ready to activate the market.

According to CryptoQuant analyst oinonen_t, USDT and USDC reserves on Binance continuously maintain high levels, exceeding 31 billion USD in total value. Meanwhile, Bitcoin reserves on exchanges are decreasing.

These two factors suggest that investors are preparing for an altcoin season.

"So what's behind the separation of stablecoin and Bitcoin reserves? First, in a price increase cycle, Bitcoin units are typically withdrawn from exchanges to personal wallets and long-term stored in Cold Storage. On the other hand, increasing stablecoin reserves reflect parked capital — unused 'dry powder' ready to be deployed," oinonen_t explained.

However, repeated predictions about an altcoin season in recent years have become something like a "boy who cried wolf", making investors skeptical and cautious.

A recent BeInCrypto report also highlighted increasing doubts among small retail investors. However, famous market analyst Michaël van de Poppe believes that skepticism is a natural part of the price increase cycle.