Bitcoin Hits $111,000 Altcoins Gain 10% Market Share

In July 2025, Bitcoin surged to a new all-time high, surpassing $111,000. Concurrently, the Bitcoin Dominance index (BTC.D) declined from 66% to 64.5%, indicating a potential shift in investor interest towards altcoins. This decline in Bitcoin's market share suggests that investors are diversifying their portfolios beyond the leading cryptocurrency, seeking opportunities in alternative digital assets.

The altcoin market capitalization has surpassed $1.2 trillion, outpacing Bitcoin’s growth. This significant increase in the altcoin market cap, which has grown nearly 10% since early July, signals a growing appetite for alternative cryptocurrencies. The surge in altcoin market capitalization reflects a broader trend where investors are increasingly allocating capital to altcoins, driven by the potential for higher returns and diversification benefits.

According to sources, the high stablecoin reserves on exchanges, combined with falling Bitcoin balances, indicate that investors are positioning themselves for a possible altcoin rally. The accumulation of stablecoins, including USDT and USDC, on major exchanges has remained elevated above $31 billion. This trend is typically observed during bullish cycles when investors move their Bitcoin holdings to cold storage for long-term holding, freeing up capital for deployment into altcoins.

Crypto analyst Master of Crypto emphasizes that an altcoin season does not necessarily require a Bitcoin price crash. Instead, a sideways Bitcoin price movement coupled with a continued decline in BTC dominance could create ideal conditions for altcoins, particularly low- and mid-cap tokens, to rally. The analyst points to key technical indicators, noting that if BTC.D falls below the 50-day EMA, a mini alt season may unfold, while a drop below the 200-day EMA could trigger a significant altcoin rally involving major tokens like Ethereum (ETH), Solana (SOL), and popular meme coins.

Despite these promising indicators, skepticism remains prevalent among retail investors due to repeated altcoin season predictions that have yet to materialize fully in recent years. However, prominent market analyst Michaël van de Poppe views this skepticism as a natural and healthy component of a bull cycle, often preceding significant market moves. He advises investors to remain vigilant and consider the broader market context when evaluating altcoin opportunities.

The cryptocurrency market is showing early signs of a potential altcoin season, driven by Bitcoin’s new all-time high, declining dominance, and substantial stablecoin reserves on exchanges. While investor caution persists, the current market structure and technical indicators suggest that altcoins could experience significant growth in the coming months. Market participants should monitor BTC dominance levels and stablecoin flows closely to gauge the strength and sustainability of this emerging trend.