The cryptocurrency market has recorded a 2.31% increase in the past 24 hours, raising the total market capitalization to $4.11 trillion. Daily trading volume has also surged by 30.31%, reaching $237.92 billion, according to information from CoinMarketCap.
The release of new US CPI data has sparked a market-wide recovery, with Bitcoin (BTC) reaching a new all-time high near $124,000. This has greatly benefited altcoins.
Retailer signals: Search volume reaches a five-year high
Retail investor interest appears to be shifting towards altcoins.
According to data from Google Trends, global searches for the term 'altcoin' have reached a five-year high, surpassing the 50/100 mark.
This increase comes after several months of inactivity following the peaks at the end of December 2024 and the beginning of 2025. Investors are watching to see if this could be a sign of a sustainable altcoin season.
Capital flowing into altcoins
The total market capitalization of altcoins has reached a three-month high of $1.67 trillion, although still lower than Bitcoin's $2.39 trillion. However, capital rotation is becoming evident.
According to data from Glassnode, Bitcoin's dominance level has dropped from 65% to 59% in just two months.
At the same time, the Altcoin Season Index has increased to 39, up from 34 yesterday and 29 a month ago. This indicates it is approaching the threshold of 75, which is often associated with a full altcoin season.
Merlijn The Trader described the latest movement of this index as a 'bull flag' poised for a breakout, emphasizing that a complete shift from BTC to altcoins could lead to 'explosive' volatility.
Altcoins outperforming! ETH leading
Over the past 90 days, altcoins have outperformed Bitcoin, with memecoins like BUILDon (B), MemeCore (M), Pudgy Penguins (PENGU), SPX6900 (SPX), and Conflux (CFX) recording significant gains.
Ethereum (ETH), the largest altcoin, has risen 81% during this period, while Bitcoin only increased by 17%. According to Polymarket, the probability of ETH reaching a new all-time high (ATH) before August 31 is 80%.
As the altcoin season is gradually forming, it remains unclear whether the four-year cycles will repeat in 2025.
Does history repeat itself like in 2017 and 2021?
History shows that altcoin seasons often occur in the year following a Bitcoin halving. Altcoins seem to be preparing for a price surge similar to those seen in 2017 and 2021.
The Altcoin Season Index is gradually changing and providing hints. However, the altcoin season is still in the early stages, with a real breakout predicted to occur when more than 75 altcoins dominate over Bitcoin.
In terms of figures, the total market capitalization of altcoins has surpassed the December peak. Maintaining above this level could signal the start of an altcoin season. Conversely, failing to do so would invalidate expectations.