Despite the drop in trading activity, the market capitalization of Bitcoin rose slightly to $2.34 trillion. However, BTC has cooled off since reaching its all-time high of $124,000 last week. Historically, August has been a weaker month for Bitcoin, and analysts warn that the price could return to the support zone of $116,000 if the slowdown continues.
One of the biggest signals comes from Bitcoin's overall market share. BTC dominance has dropped from 65% in May to less than 59% today, a decline of more than 6%.
This suggests that traders are diversifying into altcoins. Ethereum, Solana, and various AI and DeFi tokens have experienced significant gains in both price and market capitalization over the past month. In fact, altcoins collectively added over 50% to their market value, reaching approximately $1.4 trillion.
The shift has not gone unnoticed by Wall Street. Coinbase Institutional noted this week that markets are on the brink of a full altcoin season. For example, Ethereum's trading volume surged 300% in the last month. With Bitcoin stabilizing, more investors seem willing to take risks in lower-cap assets.
The coming weeks could set the tone for the rest of 2025.
▫️Bitcoin remains strong but shows signs of fatigue.
▫️The decline in dominance signals a growing demand for altcoins.
▫️Institutional players are openly announcing an upcoming altseason.
For investors, this could mean opportunities beyond Bitcoin, but also greater volatility overall.