The crypto market might be on the cusp of a pivotal change. With bitcoin’s dominance slipping and altcoin performance climbing, anticipation for a new altseason is growing. Recent data highlights trends that demand attention now.
What Is an Altseason and Why Does It Matter?
An altseason is when altcoins—cryptocurrencies other than bitcoin—outperform BTC over a specific period, typically measured by the top 50 or 100 altcoins’ performance in the last 90 days. This shift often creates opportunities for investors chasing high returns from smaller-cap tokens. As bitcoin’s grip weakens, capital flows into alternative projects, sparking sharp rallies, even in lesser-known assets.
For traders, altseason means volatility and liquidity. Many rebalance portfolios, moving funds from bitcoin to altcoins with strong volume and fundamentals. Seasoned investors use rotation strategies, watching for entry and exit signals to lock in gains.
Altcoin Season Index Breaks Key Levels
The Altcoin Season Index hit 57 points, crossing the threshold that separates bitcoin dominance from a potential altseason. Above 50, the index shows most top cryptos outperforming BTC over the past 90 days—a clear sign of shifting market dynamics.
The index’s recent climb is striking: from 17 points last month (heavy bitcoin dominance) to 32 last week, 52 yesterday, and now 57 today. Full altseason kicks in when 75% of top altcoins beat BTC, and the market is edging closer to that mark.
Bitcoin’s Dominance Dips, Fueling Altcoin Momentum
Bitcoin’s market dominance dropped from 64.3% to 59.8% in just one week, giving altcoins room to shine. This 4.5% slide is one of the year’s sharpest and aligns with rising altcoin indices. Ethereum’s share rose to 11.6%, while other altcoins collectively hit 28.6%, nearing 40% of the total market.
This capital reallocation echoes historical patterns. Sharp drops in BTC dominance preceded major altcoin rallies in early 2021 and mid-2017, when smaller tokens surged after bitcoin lost ground.
CMC100 Index Hits Yearly High
The CMC100 Index, tracking the top 100 cryptocurrencies, jumped from $197.07 to $245.18 over the past four weeks, marking its highest level in 2025 as of Monday, July 21. This surge reflects broad market expansion, with altcoins leading the charge. Bitcoin’s underperformance during this period underscores that alternative tokens are driving the growth.
Google Searches for Altcoins Spike
Searches for “altcoins” on Google have climbed to their highest since Q1 2024, signaling renewed retail interest. Five-year Google Trends data shows similar spikes preceded altseason rallies in 2021 and 2018. Rising search volume often correlates with higher trading activity and new investors, amplifying gains in speculative mid- and small-cap tokens.
How to Navigate Altseason Without Falling into Traps
Altseason draws in new investors and fuels risk appetite, but it’s also a minefield. FOMO can push people into shaky tokens lacking fundamentals or showing signs of manipulation. To stay safe, prioritize risk management: cap exposure to volatile assets like memecoins, diversify your portfolio, and avoid betting big on short-lived hype.
Timing matters. Use tools like TradingView to track breakouts on 1h or 4h charts. A price breaking resistance with above-average volume signals buying strength. Set stop-losses below recent lows or short-term moving averages to limit downside. Platforms like CoinMarketCap, DexScreener, and CoinGlass offer real-time insights into volume, liquidity, and whale activity. Tools like Kaito AI can help set custom trend alerts for faster decision-making.
Final Thoughts
The market is flashing signs of an altcoin resurgence. With the Altcoin Season Index climbing, bitcoin’s dominance fading, and retail interest spiking, conditions are aligning for a potential altseason. But success hinges on strategy—stick to data-driven moves, manage risk, and use reliable tools to stay ahead. Are you ready to adjust your portfolio for what’s coming?
