Bitcoin Loses Momentum: Anticipation for Altcoin Rally Grows
16:15 ▪ 3 min read
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Bitcoin (BTC)
Bitcoin shows signs of slowing momentum. The trading volume of BTC fell by 28% this week, even as the price modestly rose to around $117,582. Is capital quietly rotating towards altcoins?
In summary
The trading volume of BTC fell by 28%, although the market capitalization rose slightly to $2.34 trillion with the price holding close to $117,500.
Bitcoin's market share dropped from 65% in May to less than 59%, hinting at a capital rotation towards altcoins.
The market capitalization of altcoins increased by 50% since July, with institutions like Coinbase indicating that a full altcoin season may be near.
Bitcoin Remains Strong
Despite the drop in trading activity, Bitcoin's market capitalization 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 more than 50% to their market value, reaching approximately $1.4 trillion.