Bitcoin Hits $118,731 All-Time High As Altcoins Gain 10%

Bitcoin has reached new price levels, with an all-time high of $118,731 on July 11. However, despite this remarkable feat, the apex coin’s dominance has faded slightly, dropping from 66% to 64.5%. This decline in dominance has allowed altcoins to outperform, with 27 altcoins outpacing Bitcoin in the past 90 days. The altcoin market cap has also bounced back by over 10% since the start of the month, indicating a strong altseason momentum.

Matthew Hyland, a prominent market personality, asserted that altcoins may have a greater upside, as many are currently surging independent of Bitcoin’s influence. He noted that if the OG asset’s dominance were to decline from its current level to around 45%, the altcoin market could see even greater inflows. The Bitcoin Dominance Index has been used as a benchmark to measure the altcoin season, and a decline in dominance is generally interpreted as the beginning of an “altseason,” where the altcoin market percentage gains.

Ethereum, the second-largest cryptocurrency by market valuation, has rallied over 17% week-to-date. During this period, the ETH/BTC ratio, which is used to analyze Ether’s performance against Bitcoin, has climbed by 8.39%. Analysts like Michael van de Poppe believe that the market is set to enter the “final easy and biggest bull ever on Altcoins.” Santiment, a crypto research platform, also aligned with this view, stating that the altcoin season has started based on their analysis. As long as Bitcoin stays above the $110,000 psychological support level, traders will likely shift gains into altcoins, further driving the sector.

Another key trend underpinning this phenomenon is the high amount of exchange-held stablecoins. Often called “dry powder,” these assets are kept in reserve for the right market opening. According to CryptoQuant analyst oinonen_t, there’s a clear pattern happening on Binance. Stablecoin reserves, such as USDT and USDC, remain high, with more than $31 billion in total value. On the flip side, BTC reserves on exchanges are declining. Many investors are moving their Bitcoin off exchanges into private wallets to keep it safe for the long term. At the same time, stablecoin reserves keep growing because traders hold these funds on exchanges as “dry powder” — capital waiting to be used. This shows that while investors are locking away their Bitcoin, they’re also keeping large amounts of stablecoins ready to deploy when the right market opportunity appears.

Crypto commentator under the pseudonym Master of Crypto maintained that altcoins can still chart upward courses with the BTC price falling. He explained that if the first-born asset’s price moves sideways as its influence wanes, it could set the perfect stage for an altseason, particularly for low- and mid-cap coins. He also clarified that the strength of the from the EMA50 and EMA200 levels.