Bitcoin News Today: "Altcoin Momentum Builds: Why Bitcoin's Grip Is Slipping"

The Altcoin Season Index, a widely monitored indicator of market dynamics between Bitcoin and alternative cryptocurrencies, has surged to 63 as of September 2025, according to CoinMarketCap. This reading places the index within close proximity of the 75-point threshold, which marks the onset of what is commonly referred to as "Altcoin Season." The index has shown a consistent upward trajectory since April, rising from a low of 12 at the beginning of that month. This increase reflects a broad outperformance of altcoins against Bitcoin, signaling a potential shift in market momentum [5].

Market analysts have noted that Bitcoin's dominance, measured as its share of the total cryptocurrency market capitalization, has declined from 65% in May to 59% in August. This decline is typically considered a precursor to Altcoin Season, during which investors begin rotating capital from Bitcoin into smaller, higher-volatility assets. The current environment appears to align with this pattern, as rising liquidity and improved regulatory clarity in the U.S. and Europe are creating favorable conditions for altcoin growth [4].

One of the most compelling developments in the market is the outperformance of specific altcoins tied to platforms, governance systems, and exchange ecosystems. Tokens such as Four (FORM), Sky (SKY), and Bitget Token (BGB) have seen significant trading volumes and price movements. For example, Four has traded near $3.31, with a market capitalization of approximately $1.24 billion, while Sky has seen its daily trading volume surge by 150% following a $75 million buyback program [3]. Bitget Token, with a market capitalization above $5.7 billion, has also demonstrated sustained demand due to its utility within the Bitget exchange ecosystem.

The growing institutional interest in altcoins has further reinforced the current market trend. Ethereum, in particular, has attracted significant capital inflows, with Ethereum ETFs seeing over $3 billion in inflows within a single week. Institutional entities such as Bitmine and Microstrategy have also increased their Ethereum holdings, indicating a broader recognition of altcoin utility beyond speculative trading. Additionally, the rise of decentralized finance (DeFi) protocols and tokenized real-world assets has added depth to the altcoin market, moving it beyond mere speculation [2].

As the Altcoin Season Index climbs toward the 75-point threshold, investors are closely monitoring market conditions to determine whether the next phase of sustained altcoin outperformance is underway. Historically, altcoin seasons have produced extraordinary returns for early adopters and strategic investors. For instance, during the 2020-2021 altcoin season, the Altcoin Season Index reached 98, with several tokens recording multi-digit percentage gains. However, the high volatility associated with altcoins also means that sharp corrections can occur quickly, often triggered by changes in market sentiment or news headlines [2].

The current market setup is supported by improving macroeconomic conditions, including the potential for lower interest rates and increased liquidity, which favor risk assets like cryptocurrencies. Analysts from Coinbase Institutional have noted that these conditions, combined with clearer regulatory frameworks, are setting the stage for a strong altcoin season. The next few months will be crucial in determining whether this trend continues or if Bitcoin regains its dominance, as some analysts remain cautious about potential corrections in September [1].

Source:

[1] How Will Bitcoin and Altcoins Perform in September? (https://finance.yahoo.com/news/bitcoin-altcoins-perform-september-133153634.html)

[2] Altseason Signals Are Flashing: How to Play the Altcoin Meta in 2025 (https://www.inx.co/altseason-signals-are-flashing-how-to-play-the-altcoin-meta-in-2025/)

[3] Altcoin Season Heats Up – Four, Sky, and Bitget Token (https://finance.yahoo.com/news/altcoin-season-heats-four-sky-162406693.html)

[4] Altcoin Season? These Coins Are Soaring as Bitcoin and (https://finance.yahoo.com/news/altcoin-season-coins-soaring-bitcoin-202118188.html)

[5] Altcoin Season Index Climbs to 63, Highlighting Strong (https://www.bitget.com/news/detail/12560604944999)