🔥 Indeed, there are recurring signals indicating that altcoin season is starting to take shape — just like it did in 2021. Here are the key indicators supporting this scenario:
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📊 1. Altcoin season index is rising
- The Altcoin Season Index has surpassed 50 for the first time in 6 months, indicating a shift of capital from Bitcoin to altcoins.
- Over 49% of the top 50 altcoins outperformed Bitcoin in July, which is close to the official threshold for altcoin season.
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🚀 2. Strong performance from Ethereum and Solana
- Ethereum rose by 55% during July, supported by ETF inflows and increasing institutional interest.
- Solana broke the $200 barrier for the first time since February, with an increase in on-chain trading volume and new DeFi projects.
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📉 3. Decrease in Bitcoin dominance (BTC.D)
- Bitcoin's dominance has decreased by 6.1%, indicating that investors have started to rotate capital towards smaller and riskier projects.
- The decrease in USDT dominance to 3.21% could be the "strongest signal" indicating the start of altcoin season, according to PlanD's analysis⁽¹⁾.
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🧠 4. Strong correlation with small-cap stocks in the United States
- There is a close relationship between the performance of altcoins and the Russell 2000 small-cap index.
- The rise in the small business confidence index in America enhances the likelihood of continued momentum in altcoins.
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🎯 Summary:
Yes, the pattern is repeating — technical breakouts, institutional flows, and a decrease in Bitcoin's dominance all indicate that altcoin season has indeed started. Ignoring these signals could mean missing out on one of the strongest market rallies in 2025.