Altcoin Season Looms: Can Bitcoin’s Dominance Drop Spark a Crypto Frenzy?

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Oh my, oh me! The crypto market is in a twist, my friends! 🤯 Bitcoin has just reached a new all-time high (ATH) in July 2025, but, and this is a big but, its dominance has taken a bit of a tumble. It’s like the king of the castle has lost his crown, and all the other cryptocurrencies are like, “Hey, we want a piece of the action too!” 🤑

The Bitcoin Dominance index (BTC.D) has dropped from 66% to 64.5%, which is a rather significant decline, if I do say so myself. This has given altcoin investors a reason to be optimistic, and they’re rubbing their hands together in glee, thinking, “This could be the start of something big!” 🚀

The Altcoin Market Cap Rises, and Analysts are Getting Excited

According to TradingView data, the altcoin market cap (TOTAL2) has recovered nearly 10% since early July and has recently surpassed $1.2 trillion. That’s a lot of moolah, if you ask me! 💸

Meanwhile, Bitcoin’s Dominance has continued to fall, and on July 9, when Bitcoin reached a new ATH above $111,000, BTC.D continued to drop like a stone. This suggests that altcoins are gaining market cap faster than Bitcoin, which is a rare and long-awaited sign for altcoin investors. It’s like the crypto equivalent of a blue moon! 🌕

Pseudonymous crypto analyst Master of Crypto (what a fantastic name, by the way!) said that Bitcoin doesn’t need to crash for an altcoin season to begin. Instead, if BTC’s price moves sideways while dominance keeps falling, it could create the perfect conditions for altcoins, especially low- and mid-cap tokens, to rally. It’s like a game of musical chairs, and the altcoins are ready to take their seats! 🎶

He also pointed out that the intensity of the altcoin season depends on how deeply BTC.D drops, specifically concerning the EMA50 and EMA200 levels. It’s all a bit technical, but trust me, it’s like a big game of crypto chess! 🏰

“If BTC.D falls below the 50-day EMA → we might see a mini alt season (low/mid caps pump). If it breaks the 200-day EMA → get ready for a major alt season (ETH, SOL, memes go wild),” Master of Crypto predicted. It’s like a crypto crystal ball, and we’re all waiting with bated breath to see what happens next! 🔮

Stablecoins are on the Rise, and Investors are Loaded with ‘Dry Powder’

Another key factor is the high amount of stablecoins held on exchanges, often called “dry powder,” ready to ignite the market. It’s like a big box of matches, just waiting for someone to strike the first match! 🎯

According to CryptoQuant analyst oinonen_t, USDT and USDC reserves on Binance have consistently stayed high, exceeding $31 billion in total value. Meanwhile, Bitcoin reserves on exchanges are declining. It’s like a big game of crypto musical chairs, and the stablecoins are taking their seats! 🎶

These two factors indicate that investors are preparing for an altcoin season. It’s like the calm before the storm, and we’re all waiting for the crypto storm to hit! ⛈️

“So what’s behind the decoupling of stablecoin and Bitcoin reserves? First of all, during a bull cycle, Bitcoin units are usually withdrawn from exchanges into private wallets and stored long-term in cold wallets. On the other hand, the growing stablecoin reserves reflect sidelined capital — unused ‘dry powder’ ready to deploy,” oinonen_t explained. It’s like a big crypto puzzle, and we’re all trying to figure out the next move! 🤔

However, repeated predictions of an altcoin season over the past few years have turned into something like the “boy who cried wolf,” leaving investors skeptical and cautious. It’s like the crypto equivalent of a big, bad wolf, and we’re all waiting to see if it’s just a false alarm or the real deal! 🐺

A recent report by BeInCrypto also pointed to growing doubt among retail investors. Still, well-known market analyst Michaël van de Poppe believes that skepticism is a natural part of a bull cycle. It’s like the crypto market is playing a big game of “wait and see,” and we’re all holding our breaths to see what happens next! 🤯

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2025-07-10 16:37