Altcoin Season Index surged by 147% in 30 days, rising from 20 to 47, suggesting growing interest in non Bitcoin assets.
Bitcoin dominance dropped from 63.99% to 60.59%, hinting at capital flow into altcoins like gaming, AI, and DeFi tokens.
Regulatory clarity through the GENIUS Act and reduced leverage suggest altcoin market readiness ahead of Fed decisions.
The crypto market is showing signs of a possible change in momentum as the Altcoin Season Index pushes higher, hinting at growing altcoin interest. After dropping below 25 in early 2025, indicating a period of Bitcoin dominance, the index has rebounded sharply to 45.
This rise is a notable turnaround from the April low near 20, indicating increasing capital rotation from Bitcoin to altcoins. The level for an official "Altcoin Season" is 75, but the current trend shows increasing speculative appetite in non Bitcoin assets.
Bitcoin Dominance Drops as Altcoins Regains Strength
Bitcoin dominance has declined to 60.59% a 0.44-point drop in the past 24 hours. This comes after BTC topped at 63.99% dominance in June, suggesting a gradual shift toward altcoins.
Altcoin Season Index Chart, Source: CryptoJack on X
The CMC Altcoin Season Index, although still in Bitcoin levels at 47/100, has risen by 147% in just 30 days. This is below the altcoin season level, yet the current pace may indicate a widening performance gap in favor of alts.
Despite this, Bitcoin still has institutional attention. Around 85% of crypto ETF inflows continue to target Bitcoin, showing its dominance. However, the ongoing upward movement in the altcoin index and minor drops in Bitcoin dominance show cautious capital rotation.
Sector Breakouts Shows Rising Altcoin Speculation
Specific sectors are leading the latest altcoin recovery. Gaming and AI related tokens have surged, with GameGPT gaining by 33% after launching an alpha game builder. Tagger had a 244% monthly spike, largely due to USD1 stablecoin integration.
In DeFi, Tezos had a 58% rally following Etherlink L2 reaching $45 million in total value locked. FTT also added 15% after news of Backpack's claims platform. Meanwhile, Ethereum gained by 23% weekly, reclaiming December 2024 levels, as noted by analyst Michael van de Poppe. He also observed that many altcoins are 50–80% below their December highs.
Broader Market Conditions Come with New Opportunities
Macro factors are also affecting the altcoin narrative. The passage of the GENIUS Act has given stablecoin regulations new clarity, supporting tokenization narratives. A 5.7% drop in derivatives open interest suggests traders are cutting leverage before the next Federal Reserve meeting.
Despite high Bitcoin correlation at 0.82, this indicates early stage rotation. The market is monitoring a break of 50 in the Altcoin Season Index and a new high in the ETH/BTC ratio, now at 0.0378.
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