The strong recovery in early Q2 2025 marks a robust return for selected altcoins, with Bitcoin (BTC) soaring from $74,000 to over $100,000, resulting in double to triple-digit growth for altcoins.

As of now, with BTC reaching a new high of over $111,000, a new, broader altcoin season may soon begin.

When Bitcoin reaches a peak of $122,000, the market will enter a phase of adjustment and consolidation—at that point, things will get very interesting: the altcoin season will officially begin.

Early signals from the altcoin market.

Some early signs indicate that an altcoin season is forming, especially after a slight decline in the dominance of Tether (USDT.D).

This is seen as a sign of improved market liquidity, as investors begin reallocating funds from USDT to potential altcoins.

Notably, recent chart data suggests that the recovery in April can be seen as the third altcoin season in this cycle—albeit at a slower pace and primarily focused on certain specific currencies.

At each stage, the decline in USDT dominance (as indicated by the red line) corresponds with an increase in the size of the altcoin market (TOTAL3 - excluding BTC and ETH), as shown by the blue arrows.

In just Q2 2025, the market capitalization of altcoins increased by $200 billion, corresponding to a drop in the share of USDT.D from 6% to 4.3%.

However, since mid-May, BTC (BTC.D) dominance has soared to nearly 64%, leading to a temporary stall in the rise of altcoins. For the prospects of altcoins to materialize, this dominance needs to continue declining.

ETH and technical indicators support the altcoin trend.

Another important indicator—the ETH/BTC ratio—also shows positive signals for the altcoin market.

If ETH continues to rise against BTC, then the altcoin season has arrived. Hopefully, your portfolio will eventually 'skyrocket'.

This ratio has recently risen to 40%, indicating that ETH is performing better than BTC—this is a potential bullish signal for altcoins. If this trend continues, the possibility of a full rebound will become more apparent.

However, not all funds from BTC will flow into altcoins. It is recommended to focus on currencies with strong fundamentals and long-term potential.

Several major altcoins, like Solana (SOL), are approaching and may break through key resistance levels—the 200-day moving average (SMA)—further reinforcing expectations for a further rebound.

Currently, the altcoin season indicator remains low at 20 points, reflecting that the market is still in a Bitcoin-dominated phase.