The crypto market has witnessed significant changes. Bitcoin (BTC) reached its new all-time high (ATH) in July 2025. At the same time, the Bitcoindominance Index (BTC.D) fell from 66% to 64.5%.
This decline gives Altcoin investors a reason to be optimistic. Altcoins’ market capitalization is growing faster than Bitcoin.
Altcoin’s market capitalization rises, analysts predict the Altcoin season
According to TradingView data, Altcoin’s market capitalization (Total2) has recovered nearly 10% since early July. It has recently surpassed $1.2 trillion.
Meanwhile, Bitcoin’s advantage fell from 66% to 64.5%. This is the most significant drop since May.
In particular, on July 9th, when Bitcoin reached a new ATH of over $111,000, BTC.D continued to collapse. This suggests that Altcoin is gaining market capitalization faster than Bitcoin, a rare and long-awaited sign for Altcoin investors.
Additionally, Crypto’s pseudonymous Crypto analyst master said there is no need for Bitcoin to crash to start the Altcoin season. Instead, as BTC prices continue to decline while their advantage continues to decline, it could create the best conditions for Altcoins (especially low cap tokens and mid cap tokens) to gather.
He also noted that the intensity of the Altcoin season depends on how deeply BTC.D decreases, particularly with regard to EMA50 and EMA200 levels.
“If BTC.D falls below the 50-day EMA, you may see a mini-alt season (low/CAPS pump). If you break the 200-day EMA, prepare for the major ALT season (ETH, SOL, MEMES GO WILD),” predicted the Crypto master.
Investors who have been raised in exchange and have “dry powder” loaded with Stablecoins
Another important factor is the large amount of stub coins held in exchanges, often referred to as “dry powder,” ready to fire the market.
According to crypto analyst Oinonen_t, Binance’s USDT and USDC reserves have stayed consistently high, totaling over $31 billion. Meanwhile, Bitcoin reservations on exchanges are declining.
These two factors indicate that investors are preparing for the Altcoin season.
“So, what’s behind the decoupling of stubcoin and Bitcoin reserves? First of all, during the bull cycle, Bitcoin units are usually withdrawn from exchanges to private wallets and stored in cold wallets for a long period of time.
However, repeated predictions for the Altcoin season over the past few years have become something of a “boy who screamed a wolf” that has made investors skeptical and cautious.
A recent report from Beincrypto also pointed out growing doubt among retail investors. Still, renowned market analyst Michael Van de Poppe believes skepticism is a natural part of the bull cycle.
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