With Bitcoin hovering just below its all-time high, a new wave of crypto momentum appears to be building — and this time, it’s altcoins stealing the spotlight.

According to a new report by CoinDesk, capital is rotating out of Bitcoin and flowing into other crypto assets, marking what many are calling the start of altcoin season.

Key Highlights:

CryptoQuant’s MVRV-based altcoin season indicator has flashed bullish for several weeks in a row, for the first time since mid-2024.

Major Layer-1 tokens are on fire:

SUI is up +36%

SEI has gained +41%

Ethereum (ETH) surged +23.3%, outpacing Bitcoin’s 9.3%

Meme coin dominance is fading fast, making way for projects with real-world utility.

BTC’s Role in the Rally

Bitcoin recently hit a high of $124,000, but has since settled above $112,000. This sideways movement is allowing altcoins to shine. However, if Bitcoin makes a major move — up or down — it could pull liquidity away from these rising tokens.

“Altcoin seasons in past bull runs were fueled by hype and memes,” notes CoinDesk. “This time, it’s more refined. Investors are targeting coins tied to actual network activity and adoption.”

The Data Confirms the Shift:

MVRV indicators show altcoins gaining ground relative to BTC and ETH.

The CD20 index — which tracks a wider range of altcoins — is outperforming the CD5 index (BTC, ETH, XRP, SOL, ADA).

Meme coin dominance is crashing, especially after flops like the coins launched by Donald and Melania Trump.

CoinMarketCap’s altcoin barometer just hit 36/100, a number rarely seen this year.

What’s Next?

If Bitcoin continues to consolidate above $112K, expect the altcoin rally to continue. But any sharp BTC volatility could see altcoins take a backseat again.

"It’s all about balance," said analysts. “If Bitcoin stays stable, altcoins can run. But if BTC makes another moonshot, capital might chase it instead.”

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