Bitcoin Hits New ATH as Dominance Declines, Suggesting Possible Altcoin Season Ahead

• Bitcoin surged to a new all-time high above $111,000 in July 2025, while Bitcoin Dominance (BTC.D) declined from 66% to 64.5%, signaling a potential shift toward altcoins.

• The altcoin market capitalization has surpassed $1.2 trillion, outpacing Bitcoin’s growth and suggesting increased investor interest in alternative cryptocurrencies.

• According to COINOTAG sources, high stablecoin reserves on exchanges combined with falling Bitcoin balances indicate that investors are positioning themselves for a possible altcoin rally.

Bitcoin hits $111K ATH as altcoin market cap surpasses $1.2T; falling BTC dominance and rising stablecoin reserves hint at an imminent altcoin season.

Altcoin Market Cap Surges Past $1.2 Trillion Amid Declining Bitcoin Dominance

In July 2025, the cryptocurrency market experienced a notable divergence as Bitcoin reached a new all-time high above $111,000, yet its dominance index (BTC.D) fell from 66% to 64.5%. This decline in dominance reflects a growing appetite for altcoins, as investors diversify their portfolios beyond Bitcoin. Data from TradingView reveals that the altcoin market cap (TOTAL2) has surged nearly 10% since early July, crossing the $1.2 trillion threshold. This growth rate outpaces Bitcoin’s, indicating a shift in market dynamics where altcoins are gaining traction and capital inflows.

Market Analysts Highlight Potential for a Major Altcoin Season

Crypto analyst Master of Crypto emphasizes that an altcoin season does not necessarily require a Bitcoin price crash. Instead, a sideways Bitcoin price movement coupled with a continued decline in BTC dominance could create ideal conditions for altcoins, particularly low- and mid-cap tokens, to rally. The analyst points to key technical indicators, noting that if BTC.D falls below the 50-day EMA, a mini alt season may unfold, while a drop below the 200-day EMA could trigger a significant altcoin rally involving major tokens like Ethereum (ETH), Solana (SOL), and popular meme coins.

Stablecoin Reserves on Exchanges Signal Investor Readiness for Altcoin Inflows

Another critical factor supporting the altcoin optimism is the accumulation of stablecoins on major exchanges. CryptoQuant analyst oinonen_t reports that stablecoin reserves, including USDT and USDC, on Binance have remained elevated above $31 billion. Concurrently, Bitcoin reserves on exchanges are decreasing, a trend typically observed during bullish cycles when investors move BTC to cold storage for long-term holding.

Oinonen_t explains that this divergence between stablecoin and Bitcoin reserves reflects “dry powder” — capital that is currently idle but poised to enter the market. This buildup of stablecoins suggests that investors are preparing to deploy funds into altcoins, potentially fueling a new wave of price appreciation across the sector.

Investor Sentiment and Market Skepticism Amid Altcoin Season Predictions

Despite these promising indicators, skepticism remains prevalent among retail investors due to repeated altcoin season predictions that have yet to materialize fully in recent years. A report by COINOTAG highlights this cautious sentiment. However, prominent market analyst Michaël van de Poppe views this skepticism as a natural and healthy component of a bull cycle, often preceding significant market moves. He advises investors to remain vigilant and consider the broader market context when evaluating altcoin opportunities.

Conclusion

The cryptocurrency market is showing early signs of a potential altcoin season, driven by Bitcoin’s new ATH, declining dominance, and substantial stablecoin reserves on exchanges. While investor caution persists, the current market structure and technical indicators suggest that altcoins could experience significant growth in the coming months. Market participants should monitor BTC dominance levels and stablecoin flows closely to gauge the strength and sustainability of this emerging trend.