We observe that the recent drop in Bitcoin dominance to around 59-61%, coupled with the Altcoin Season Index trending upward, suggests capital rotation into altcoins like Ethereum, XRP, Solana, and BNB, which have posted gains of 20-40% recently.
Strong performances from memecoins and sectors like AI and RWAs indicate growing investor interest, but the index remains below the 75% threshold needed for a confirmed altseason.
This could be a temporary rotation rather than a sustained trend, as Bitcoin’s consolidation above $118,000 may still draw liquidity.
For momentum to sustain into mid-to-late Q3, we need Bitcoin dominance to fall below 60% consistently, and rising funding rates without excessive leverage.
Continued institutional inflows, regulatory clarity like the GENIUS Act, and strong fundamentals in Layer-1s and DeFi could confirm a full-blown altseason.
However, sharp Bitcoin price movements or macroeconomic shifts could disrupt this trajectory, so cautious monitoring of these indicators is essential.
Ryan Lee, Chief Analyst at Bitget Research
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