Decrease in Bitcoin trading volume by 28% amidst growing anticipation for altcoin rally
In the dynamic world of cryptocurrency, signs of an approaching altcoin season are becoming increasingly apparent. The recent shifts in the market suggest that investors are expanding their portfolios beyond Bitcoin, with altcoins gaining traction.
Key indicators pointing towards an altcoin season include a sustained decline in Bitcoin dominance. Bitcoin's market share has fallen below the 54% mark, signalling that capital may be rotating into altcoins [2]. This shift is significant, as it suggests a shift in the market's focus.
Another crucial sign is altcoins outperforming Bitcoin over a rolling 30 to 90-day period. The Altcoin Season Index, which tracks the performance of the top 100 altcoins relative to Bitcoin, is a useful tool in measuring this trend [1][2][3]. Currently, the Index stands around 45-49, indicating that Bitcoin still leads overall market performance, but individual altcoins are significantly outperforming Bitcoin, hinting at growing altcoin momentum [4].
The Altcoin Season Index exceeding a threshold (above 75) is another clear sign of altcoin strength relative to Bitcoin. This means at least 75% of the top 100 altcoins have outperformed Bitcoin over the past 90 days [1][3]. While we are not yet at this point, it's a trend worth keeping an eye on.
In addition to these factors, increased trading volume and capital inflow into altcoins, positive social media sentiment, and heightened retail trader activity around altcoins serve as early indications of rising interest [2]. These signs, combined with market liquidity conditions and rapid technological advancements in altcoin ecosystems, further fuel this momentum.
As of late August 2025, the combined market capitalization of all altcoins has climbed more than 50% since early July, reaching approximately $1.4 trillion [6]. This growth underscores the growing investor appetite beyond Bitcoin.
It's important to note that while the signs are pointing towards an altcoin season, it has not yet begun in full force. The Altcoin Season Index, while showing promising trends, is not yet above the 75 threshold [3][4][5].
Coinbase Institutional recently reported that the market is nearing the threshold of a full-scale altcoin season as September approaches [7]. As we move forward, it will be interesting to see how these trends develop and whether the altcoin season will indeed arrive.
In other Bitcoin-related news, Bitcoin's fully diluted valuation is now $2.46 trillion, and its market cap rose slightly to $2.34 trillion, marking a 1.09% increase [6]. Bitcoin's supply stands at 19.9 million BTC, and it was trading at $117,582.66 at press time [6]. Bitcoin's trading volume climbed to $65.16 billion over the last 24 hours, up 27.25% [6]. Despite a 28% fall in trading volume on Saturday, Bitcoin surged to a new all-time high above $124,000 earlier this week [6].
In conclusion, while the signs are pointing towards an approaching altcoin season, it has not yet fully materialised. However, the trends in Bitcoin dominance, altcoin outperformance, the Altcoin Season Index, and social media sentiment suggest that we may be on the cusp of a significant shift in the cryptocurrency market. Keep a close eye on these indicators as we move into September.
References: [1] Altcoin Season Index [2] CoinMarketCap [3] CoinGecko [4] TradingView [5] BitcoinTreasuries [6] CoinDesk [7] Coinbase Institutional
- As suggested by the Altcoin Season Index, Bitcoin dominance has declined, and altcoins are outperforming Bitcoin, a sign that investors are expanding their portfolios beyond Bitcoin.
- The market is nearing the threshold of a full-scale altcoin season, with increased trading volume and capital inflow into altcoins, positive social media sentiment, and heightened retail trader activity serving as early indications.
- The combined market capitalization of all altcoins has grown significantly, reaching approximately $1.4 trillion, and this growth indicates growing investor appetite beyond Bitcoin.
- Despite the recent signs, the Altcoin Season Index has not yet surpassed the crucial threshold of 75, signaling that at least 75% of the top 100 altcoins have outperformed Bitcoin, but it's a trend worth keeping an eye on.
- As Coinbase Institutional reported, the cryptocurrency market is moving towards an altcoin season, and it will be interesting to see how these trends develop in the coming days, with the approaching month of September bringing potential significant shifts in the market.
