Bitcoin News Today: Altcoin Season Index Stalls at 41 Amid Fed QT as Bitcoin Dominance Hits 61.17%

Altcoins remain subdued amid continued U.S. Federal Reserve Quantitative Tightening (QT), with the CMC Altcoin Season Index stalling at 41, reinforcing a "Bitcoin Season" dynamic as Bitcoin’s dominance holds at 61.17% [1]. The broader altcoin market has shown structural weakness, with the OTHERS/BTC chart trending lower into August 2025, marked by repeated declines after local peaks [1]. Weekly data reveals consistent pullbacks, pushing the altcoin-to-Bitcoin ratio further downward across months. However, recent divergence in the RSI on the OTHERS/BTC chart suggests the potential for a reversal as momentum builds despite ongoing price declines [1].

Observations from Ted Pillows highlight prior reversal patterns where RSI reached oversold levels around 30 before rebounds occurred [1]. The latest price low hit 0.11 before a minor recovery to 0.12, while the RSI hit a higher low at 43.28, indicating a divergence in price and momentum trends [1]. A visual comparison of price and RSI arrows further confirms the opposing trajectories—price levels declining while RSI trends upward [1].

The broader macroeconomic environment has also been a key factor in altcoin weakness, as QT policies have pressured risk assets including cryptocurrencies [1]. However, expectations are shifting toward a potential September rate cut, which could signal the end of QT measures and create favorable conditions for altcoins to regain momentum [1]. In previous cycles, altcoins rebounded when RSI diverged and monetary policy eased, and current conditions closely mirror those setups [1].

Despite some individual altcoins, such as MYX and SPK, posting gains of 101% and 31.7% respectively, these rallies were driven by exchange listings and protocol upgrades rather than broad-based market demand [1]. Meanwhile, perpetual futures open interest fell 17.6% in the past 24 hours, and altcoin funding rates turned negative at -0.0024%, reflecting cautious sentiment among leveraged traders [1]. Bitcoin, in contrast, saw $32 million in liquidations, mostly short positions, underscoring its relative strength in the current market environment [1].

Large institutional players continue to accumulate Bitcoin, with Metaplanet recently acquiring 463 BTC valued at $53 million, following Trump Media’s reported $2 billion in Bitcoin holdings [1]. These developments further reinforce Bitcoin’s dominant position and suggest that altcoins may struggle to reclaim market share unless broader macroeconomic conditions shift in their favor [1].

Source: [1] Altcoins Face Fed QT Pressure as Index Stalls at 41 Against Bitcoin: Will Altcoins Reclaim Market Share in September? (https://cryptonewsland.com/altcoins-face-fed-qt-pressure-as-index-stalls-a/)