Bitcoin Dominance Drops to 4-Month Low: Is Altseason Nearing?
The cryptocurrency market is witnessing notable movements as the Bitcoin dominance index, which reflects the proportion of BTC's capitalization compared to the entire market, has plummeted to 60.9%, its lowest level since the beginning of the year. The decline comes amid strong growth in altcoins, especially Ethereum, raising expectations of an altcoin season in which alternative coins to Bitcoin outperform in performance.
Altcoins gradually gain the upper hand
While Bitcoin's price has stabilized around $118,000–$120,000 without a clear breakthrough, Ethereum has recorded a 27% increase in just one week, approaching the $4,000 mark. ETH's strong recovery has motivated a series of other altcoins to increase in price, increasing the total capitalization of the altcoin market and causing Bitcoin's proportion to decline.
This development shows that investor sentiment is shifting away from the leading asset to alternatives with higher potential returns. A key indicator, called the “Altcoin Season Index” provided by BlockchainCenter, is approaching the “altseason” threshold, which is the point at which the majority of altcoins outperform Bitcoin over a 90-day period.
Currently, about 50% of the top 50 altcoins have outperformed Bitcoin, although this is not enough to confirm an official altcoin season (which requires 75% of altcoins to outperform BTC). However, if the current rally continues and more tokens break out, the market could enter an altseason as early as next month.
Bitcoin Market Share Weakens: A Signal of Major Change
Bitcoin’s dominance has dropped more than 5% since mid-June, from 64.5% to just 60.9%. This drop is seen as the first sign that the market is entering a divergence cycle, where investors start looking for profits in smaller-cap coins with higher potential.
What is particularly noteworthy is that despite the decline in BTC's market share, its price has remained relatively stable, suggesting that the change is not due to selling pressure but rather strategic capital allocation. This is a positive sign, as it reflects a more mature market and growing interest in the altcoin ecosystem.
Caution is still needed
While the prospect of an altcoin season is becoming clearer, analysts warn that caution is still needed. With many altcoins reaching multi-month highs, the risk of a short-term correction cannot be ruled out if investors start booking profits en masse.
A sharp correction could disrupt the rally and delay the official confirmation of the altseason to Q3 2025. With the market in a transitional phase, risk management and proper portfolio allocation will be key to capitalizing on this cycle.
Conclusion
The decline in Bitcoin dominance combined with the strong momentum of Ethereum and other altcoins paint a promising picture for an altcoin season in the coming time. However, the market still needs more confirmation signals for the altseason to truly begin. If the money flow trend continues to favor altcoins, it is likely that a new boom phase will open in the next quarter, creating many valuable opportunities for investors who know how to seize the right time.