If you've recently glanced at the crypto circle, you may have noticed that besides Bitcoin, a bunch of 'small coins' are also rising — this is not an illusion. Altcoins are indeed collectively stirring, simply put, propelled by the threefold factors of 'timing, location, and harmony'.

🌪️ 1. Market sentiment has changed: The altcoin season may really be coming.

It was previously a 'one-man show' for Bitcoin, but now funds are starting to flow into other coins.

  • Bitcoin signals 'making way': Bitcoin's share in the overall cryptocurrency market cap has recently been stuck at over 65% high, but analysts generally believe this is a resistance level. If it can't hold, funds will flow into altcoins. Historical patterns show that Bitcoin's dominance tends to decrease in the later stages of each bull market (for example, it fell over 45% in 2017 and 2021). This time, it is predicted to drop by about 37%, giving altcoins some breathing room.

  • Ethereum leads the charge: ETH has surged significantly in the past month, not only breaking through $2,700, but the ETH/BTC exchange rate has also clearly strengthened — this is seen as a key signal for the start of the 'altcoin season'. Analysts even proposed a '72-hour observation window': If ETH can maintain its strength, the altcoin market will be officially confirmed.

🚀 2. Regulatory green light, ETF ignites new expectations

The biggest variable this year is that the U.S. may bulk approve altcoin ETFs, which is equivalent to opening a compliant entry path for traditional funds.

  • Trump's crazy 'merchandising': His company Truth Social has recently submitted three ETF applications in the last three months: from pure Bitcoin → Bitcoin + Ethereum combination → to 'crypto blue chip basket' (including SOL, XRP, etc.). This high-frequency operation not only generates buzz but also suggests a loosening of policies.

  • SEC plans to 'bulk approve': Facing over 70 applications for altcoin ETFs, the U.S. Securities and Exchange Commission (SEC) is drafting a set of 'universal listing standards'. Simply put, in the future, tokens that meet the criteria (such as large market capitalization, sufficient decentralization) can be approved in a fast track of 75 days without having to wait for prolonged approval. Bloomberg analysts predict: LTC, SOL, XRP have a 95% chance of approval, while DOGE and others exceed 90%.

  • Pledging ETF breaks the ice: At the beginning of July, the first Solana staking ETF ($SSK) was launched in the U.S., with a trading volume of $33 million on the first day. Once this 'earn coins + earn interest' model is promoted (for instance, Ethereum staking ETFs are also in the queue), it would be a strong boost for PoS-type altcoins (like SOL, ADA).

💸 3. Fund rotation: Bitcoin has risen too much, and the little brothers are taking over.

Bull market funds flow like water, and high water levels will naturally overflow into areas of value.

  • Bitcoin is consolidating at high levels, while funds seek 'bargains': Bitcoin has increased by 20% this year, but many altcoin prices are still at floor levels (for instance, NEAR has dropped over 800% from its peak, and SUI has dropped over 60%). Large funds find Bitcoin too expensive and turn to scoop up undervalued altcoins, hoping for a rebound.

  • Expectations for liquidity easing: The Federal Reserve may cut interest rates in the second half of the year, leading to more money in the market, making it easier for risk assets (including altcoins) to be speculated.

  • DeFi locked funds hit a new high: The total locked value (TVL) on-chain has surpassed $117 billion, close to a historical peak. However, many DeFi token prices have not kept up, leading to a divergence of 'value rising but price not rising', causing funds to naturally take action.

💎 Summary

Big brother (BTC) takes a break, little brothers (Alts) take the stage;
ETF expectations are opened up, and funds rush to undervalued coins;
With just a bit of news, retail investors' FOMO takes off.