The cryptocurrency market is at a critical juncture as Bitcoin hits new all-time high 2025, surpassing $112,000 in July. However, Bitcoin’s dominance (BTC.D) has simultaneously dropped from 66% to 64.5%, signaling a potential shift in investor sentiment toward altcoins.
With the total altcoin market cap surging past $1.2 trillion and stablecoin reserves reaching record levels, analysts are debating whether this marks the beginning of a long-awaited altcoin season.
Bitcoin’s record high contrasts with fading dominance
For the first time in months, Bitcoin hits new all-time high 2025 while its market share declines—a rare divergence that has historically preceded altcoin rallies. Data from TradingView shows the altcoin market cap (TOTAL2) has surged nearly 10% since early July, outpacing Bitcoin’s growth.
“When Bitcoin dominance falls during a bull run, it’s often a precursor to altseason,”says pseudonymous analyst Master of Crypto. “If BTC.D breaks below key moving averages, we could see explosive altcoin gains.”
Key indicators:
BTC.D drop: Fell from 66% to 64.5% in July, the sharpest decline since May.
Altcoin momentum: Ethereum (ETH), Solana (SOL), and meme coins are gaining traction.
Stablecoin reserves hint at looming altcoin surge
Another critical factor supporting the altcoin season thesis is the record $31 billion in stablecoins parked on exchanges like Binance. CryptoQuant analyst oinonen_t notes that while Bitcoin reserves on exchanges are dwindling, stablecoin liquidity remains high, suggesting investors are poised to rotate into altcoins.
“This is classic ‘dry powder’ behavior,” oinonen_t explains. “Investors hold stablecoins waiting for altcoin opportunities, especially when Bitcoin dominance weakens.”
Bitcoin hits new all-time high 2025, but dominance decline triggers altcoin speculation
Data highlights:
Stablecoin reserves: Binance holds over $31B in USDT and USDC.
While Bitcoin hits new all-time high 2025, retail investors remain wary after years of false altseason predictions. A BeInCrypto report reveals growing skepticism, but analysts like Michaël van de Poppe argue this doubt is typical before major altcoin breakouts.
“Altseasons are born when least expected,” van de Poppe tweeted. “The setup is there—Bitcoin stability plus dominance drop equals altcoin fuel.”
What to watch:
BTC.D levels: A drop below the 200-day EMA could trigger a “major altseason.”
As Bitcoin hits new all-time high 2025, the decline in dominance and soaring stablecoin reserves create a perfect storm for altcoins. Whether this translates into a sustained rally or another false dawn depends on Bitcoin’s next moves—but the ingredients for an altcoin explosion are undeniably present.
“The market is setting up exactly like 2017 and 2021,” says Master of Crypto. “If history rhymes, altcoins are next.”
Sunderland-born crypto enthusiast, cycling fanatic, and wordsmith. As co-founder and lead editor of The Bit Gazette, Mark combines his passion for blockchain with a knack for breaking down complex stories into engaging content. When he's not tracking the latest crypto trends, you'll find him on two wheels—exploring backroads or clocking miles on his favorite cycling routes. Dedicated to delivering sharp, insightful journalism in the fast-moving world of digital assets.
New
