As Bitcoin’s dominance decreases, the Altcoin season could be on the horizon, with Ethereum leading the fees at a strong rally to $4,000.
Bitcoin is stable at under $120,000, but Altcoins are gaining momentum. This upward trend between Altcoins is steadily eroding Bitcoin’s share of Crypto market.
Altcoin season is round the corner
The Altcoin Season Index is currently approaching a significant AltSeason threshold. The index tracks the performance of altcoins against bitcoin.
The broader crypto market indicates whether Altcoins is in a phase where BTC is outperformed. At the time of writing, the indicator is located at the midpoint, violating the threshold and indicating the Altcoin season, ensuring a stronger performance of the Altcoins.
Currently, capital inflows favor altcoins over bitcoins, further examining positive sentiments. The Altcoin season will see 75% of the top 50 cryptocurrencies that exclude Stablecoins and Asset-Backed Tokens to perform Bitcoin in 90 days.
Currently, only 50% of these altcoins outweigh Bitcoin returns. This shows that there is room for further growth before the full-scale Altcoin season begins.
But this week’s 27% surge in Ethereum has pushed many other tokens to months’ highs. More altcoins follow Ethereum’s lead and surpass Bitcoin in the coming weeks, allowing the required threshold for the alto season to reach the beginning of next month.
Bitcoin control is shaking
Bitcoin’s advantage has declined sharply over the past five days, falling from 64.5% to 60.9%. This decline marked a low point in four and a half months, reflecting the growing market preference for Altcoins.
Often, a decline in control is the first sign of the coming Altcoin season.
Ethereum’s rally contributes significantly to this decline as BTC prices remain roughly flat at $118,301. Despite losses in market share, Bitcoin prices have not fallen, indicating a healthy market change rather than a sale. The assets continue to consolidate less than $120,000.
Still, you need to be careful. If Altcoin investors are beginning to make profits for recent profits, sales pressure can hinder the rally. Many tokens are high for months, and sudden selling can reverse profits.
This could delay the start of the true Altcoin season and push it even further into the third quarter of 2025.
Disclaimer
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