- Altcoin season may be on the horizon as Bitcoin dominance dips and capital rotates into altcoins.
- Analysts point to rising altcoin momentum and historical patterns signaling a potential shift in Q2 2025.
Is altcoin season finally making a comeback? A string of market signals suggests that crypto investors might be witnessing the early stirrings of a long-awaited rotation from Bitcoin dominance to altcoin outperformance in Q2 2025.
After Bitcoin [BTC] soared past the $100,000 milestone last week, its dominance took a noticeable hit—falling from 65.3% to 62%. According to data from Swissblock, this decline may mark the “first leg of altseason,” a pattern last seen ahead of altcoin rallies in February and November 2024
Also read: Crypto Weekly Watch: ONDO, SUI, DEEP & QNT Rally Strong — Will the Momentum Hold or Fade?
The trend is further supported by altcoin momentum indicators. Renowned crypto analyst Benjamin Cowen highlighted that a growing number of altcoins are now trading above their 100-day Simple Moving Average (SMA), a technical signal often associated with sustained bullish trends.
Capital rotation is also becoming evident. Tether’s [USDT] dominance has dropped from 6% to 4.5% in just three weeks, while the total altcoin market cap (excluding BTC and Ethereum [ETH]) rebounded from $600 billion to over $900 billion—a major surge in liquidity across alternative assets.
Despite the current Altcoin Season Index (ASI) reading of just 27—well below the threshold of 75 typically signaling altseason—analysts urge caution in relying too heavily on the lagging indicator. The index measures BTC’s performance relative to altcoins over the last 90 days, potentially overlooking the latest market dynamics.
Still, several altcoins such as Monero [XMR], Sui [SUI], Bittensor [TAO], and Tron [TRX] have already outpaced BTC in recent weeks, adding weight to the case for a shift in sentiment.
While it’s too early to officially declare the dawn of altseason, the confluence of technical signals, falling dominance rates, and historical patterns suggests that investors should keep a close eye on the evolving altcoin landscape.
The winds may be shifting—fast. Positioning in strong, fundamentally sound altcoins could be a smart move before the broader market catches on.