Bitcoin just recorded a new all-time high above $111,000, driven by massive capital inflows into ETFs and favorable macro conditions. Analysts say if the market maintains high liquidity and Bitcoin dominance hits 70%, an altcoin season could soon begin.
Bitcoin leads the market: new peak, new expectations
Since the beginning of May, Bitcoin's price has risen over 18%, reaching a peak of $111,000 this Wednesday. The main driving forces are:
Capital inflow into Bitcoin spot ETFs in the US exceeded $2.8 billion in May, raising total ETF assets held to over $122 billion, according to analysis from Reece Hobson (eToro Australia).
April halving reduces supply, driving prices up.
Supporting macro factors: increased liquidity, a weakening USD, and geopolitical tensions.
Is an 'altcoin season' coming soon?
Currently, attention is starting to shift from Bitcoin to altcoins – other coins besides BTC. However, analysts believe that for an alt season to truly explode, two conditions are needed:
Monetary easing (QE) returns, adding liquidity to the market.
Bitcoin dominance – the ratio of BTC market capitalization to the entire market – must reach around 70% (currently about 61% according to CoinGecko).
Reece Hobson commented:
"#Altseason will only begin when there is additional liquidity and Bitcoin dominates nearly the entire market."
However, according to Mena Theodorou (Coinstash), this is unlikely to happen immediately as Bitcoin is still in a price discovery phase – a phase where capital primarily flows into $BTC , rather than spreading throughout the market.
Which altcoin is ahead?
Although Ethereum remains sluggish in this cycle, new platforms like Solana and Sui are surging ahead, thanks to:
Outstanding scalability
Dynamic development community
Investors are increasingly shifting capital to high-performance blockchains with many practical applications, rather than just waiting for ETH to recover.
Conclusion
The market is witnessing 'Bitcoin's performance', but altcoins could be the next chapter – if the right conditions arise. With the strong return of institutional capital and an increasingly diverse blockchain ecosystem, the long-term future of the crypto market remains promising, not just for BTC.
⚠️ Risk warning: The cryptocurrency market is highly volatile and not suitable for all investors. You should carefully consider before participating and not invest more than you can afford to lose. This is not investment advice.
