What is the current market sentiment towards altcoins?

The current market sentiment towards altcoins is mixed, with both bullish and bearish indicators at play. Here's an analysis of the current sentiment:

1. Recent Performance: Altcoins have experienced a decline in value, with the total crypto market cap excluding Bitcoin and Ethereum exhibiting a bearish structure. This has led to a loss of over $110 billion in the altcoin market.
2. Bitcoin Dominance: Bitcoin's dominance in the cryptocurrency market has surged to 65.37%, indicating a significant shift in capital allocation patterns. This rise has coincided with a decline in altcoin valuations, suggesting that investors are turning to Bitcoin as a safer haven asset.
3. Market Volatility: Altcoins have been affected by broader market volatility, including geopolitical tensions and macroeconomic shocks. For example, the US airstrike on Iranian nuclear facilities in June caused a dip in Bitcoin prices, which subsequently affected altcoins.
4. Institutional Interest: Despite the bearish sentiment, there are signs of growing institutional interest in altcoins. For instance, Lion Group Holding's $600 million crypto treasury reserve is a clear indication of institutional adoption beyond Bitcoin
5. Retail Sentiment: Retail sentiment has been weakening, hitting levels similar to those seen in April, just before Bitcoin's rebound. This suggests that while retail investors may be cautious, they are not entirely bearish, and a reversal could be possible if market conditions improve.
6. Altcoin Season Expectations: Some market participants are anticipating altcoin season, where non-Bitcoin cryptocurrencies significantly outperform Bitcoin in terms of price gains. This is typically characterized by capital flowing from Bitcoin into altcoins, increased trading volumes, and a decline in Bitcoin's dominance.

In summary, the current market sentiment towards altcoins is cautious, with a bearish trend influenced by Bitcoin's dominance and geopolitical tensions. However, there are signs of institutional adoption and potential for growth, particularly as the market anticipates altcoin season. Retail sentiment remains cautious but not entirely bearish, and a shift in market conditions could lead to a reversal of fortunes for altcoins.