Altcoins remain weak amid Fed’s ongoing QT, with CMC Altcoin Season Index at 41 and BTC dominance at 61.17%.
RSI divergence on the OTHERS/BTC chart points to building momentum despite price declines in recent weeks.
Institutional demand supports Bitcoin, with Metaplanet acquiring $53M in BTC amid Trump Media’s $2B BTC reserves.
Altcoins remain under pressure as Bitcoin dominance holds at 61.17%, supported by ongoing institutional accumulation. Despite minor rebounds and RSI divergence on the OTHERS/BTC chart, the broader altcoin market lacks momentum, with the CMC Altcoin Season Index at 41.
Altcoin Dominance Signals Divergence Ahead of September Policy Shift
Altcoin market performance against Bitcoin continues showing structural weakness as the OTHERS/BTC chart trends downward into August 2025. Weekly data shows repeated declines after each local top, marked by red zones on the chart. These price peaks were followed by consistent pullbacks, pushing the altcoin-to-Bitcoin ratio lower across months. However, indicators now point to a divergence between price and momentum.
According to an observation by Ted Pillows, the two prior reversal zones labeled saw rebounds after RSI touched oversold levels around 30. The latest price low reached 0.11 before a minor recovery to 0.12. At the same time, the RSI printed a higher low at 43.28, forming a divergence. A yellow arrow on the price chart marks declining levels, while the RSI arrow moves upward, confirming opposing trends.
Source: X
Altcoin weakness aligned with the U.S. Federal Reserve's continued Quantitative Tightening policy earlier this year. This macro pressure drove risk assets lower, including altcoins. Despite this, expectations now shift toward a potential September rate cut. Analysts also point to the possible end of QT measures following the cut. In prior cycles, altcoins rebounded when RSI diverged and monetary policy softened. Current conditions closely resemble those setups.
Bitcoin Retains Market Control as Altcoin Season Index Holds Below Key Threshold
Bitcoin continues to dominate the cryptocurrency market, with the CMC Altcoin Season Index reading 41 out of 100. This level places the market in Bitcoin Season, with altcoins still lagging in relative performance over the last 90 days. Bitcoin dominance stands at 61.17%, down 0.6 points in 24 hours but still near its 30-day high of 64.66%. Large entities remain active in Bitcoin accumulation.
Source: CoinMarketCap
Additionally, Metaplanet acquired 463 BTC, valued at $53 million, following recent reserve activity from Trump Media totaling $2 billion in Bitcoin holdings. While individual altcoins such as MYX and SPK posted gains of 101% and 31.7% respectively, broader sector momentum remains low. These rallies stemmed from exchange listings and protocol-specific upgrades rather than macro demand across the altcoin market.
However, the perpetual futures open interest declined 17.6% over the past 24 hours. Bitcoin liquidations totaled $32 million, mostly short positions. Altcoin funding rates turned negative at -0.0024%, reflecting cautious sentiment among leveraged traders. The Altcoin Season Index must rise above 50 for broader rotation confirmation. Until then, Bitcoin retains market dominance.
