Bitcoin News Today: Altcoin Season Begins as Ethereum Surges 40% in July

Altcoins are making significant moves as several indicators suggest the onset of an altcoin season. The total crypto market cap has crossed $4 trillion for the first time, with capital flowing into altcoins and institutional interest growing through spot ETFs and on-chain assets. This shift is evident as Bitcoin's market dominance has dropped below 58%, down from 62% in less than a month, despite BTC hitting a new all-time high and holding steady around $120K.

Ethereum has been a standout performer, with its price crossing $3,600, posting a 20% gain over the past week. Other altcoins like Sui, Avalanche, Cardano, Dogecoin, and XRP have rallied between 15% and 20% during the same period. The Altcoin Index has jumped to 50 from just 15 a month ago, reflecting strong altcoin performance and growing appetite for risk. Traders are actively seeking opportunities beyond Bitcoin.

The Altcoin Season Index rises when most of the top 50 coins (excluding Bitcoin) outperform BTC over a set period. Once the index crosses 75, it signals the start of a full-blown altcoin bull market. The Fear and Greed Index has been firmly held in the Greed zone since June 23, indicating high market confidence and pushing traders toward more volatile altcoins.

Veteran trader Peter Brandt recently pointed to a classic cup and handle pattern on the altcoin market cap chart, which indicates a strong setup for a breakout. With the market cap nearing the $1.70 trillion breakout level, altcoins may be on the verge of a major surge. Crypto analyst Michaël van de Poppe says Ethereum looks strong, gaining 72% over Bitcoin since April. He believes the altcoin bull market is officially here and expects ETH to slow down a bit soon, giving a chance to buy the dip before it moves higher. He also points to what he calls the “biggest bullish divergence ever” on altcoins, signaling the start of a major rally with plenty of upside still ahead.

While altcoin season offers massive upside, it comes with serious risks. Raoul Pal warns against chasing pumps, since altcoins tend to move in waves. Instead, focus on tokens that consistently beat BTC, ETH, and SOL on weekly charts. Expert Benjamin Cowen says most altcoins are weakening against ETH and BTC. While ETH may have bottomed, many altcoins could still fall. Liquidity may shift back to Bitcoin soon, but a few coins like XRP may already be stable.

Ethereum's price has exploded by 40% in July, partly attributed to substantial inflows into Ethereum ETFs, which saw a record-breaking daily inflow. This influx of capital has helped Ethereum's price surpass $3,600 for the first time since January, marking a significant milestone for the altcoin. Ethereum's steady outperformance against Bitcoin over the past 30 days further supports the notion of an altcoin season.

XRP, another notable altcoin, has also gained traction. The token's price has surged, driven by utility and regulatory developments. The capital rotation from Bitcoin to XRP hints at the early stages of a full altcoin season, as investors seek opportunities in alternative cryptocurrencies. XRP's recent gains have positioned it as a key player in the ongoing market shift.

Dogecoin, known for its meme coin status, has also seen significant gains. The token's price has surged, benefiting from the overall bullish sentiment in the altcoin market. Dogecoin's performance, along with that of other meme coins like Solana, underscores the broader trend of capital flowing away from Bitcoin and into alternative cryptocurrencies.

The decline in Bitcoin's dominance is a clear indicator of an altcoin season. As investors rotate their capital into alternative coins, the market is experiencing a notable shift in dynamics. Ethereum, XRP, and Dogecoin are leading this charge, with their prices surging and outpacing Bitcoin's gains. This trend is likely to continue as more investors seek opportunities in the altcoin market, driven by the potential for higher returns and the diversification benefits of holding a portfolio of alternative cryptocurrencies.