Bitcoin News Today: Bitcoin's 1.6% Dip Drags Altcoins 5.5%–19% as Market Shifts to "Bitcoin Season"

Bitcoin's recent price dip to $112,044 on July 21, 2025, triggered widespread uncertainty across the altcoin market, casting doubt over the anticipated altcoin season [1]. Although Bitcoin has since recovered slightly to $114,000, the broader cryptocurrency market has not followed suit. Top altcoins have seen significant declines, with Solana dropping 10% in the past week, while XRP and Dogecoin fell by 5.5% and 9.5%, respectively [1].

Bitcoin's increasing dominance—up by 5.5% over the last month—further reflects a shift in capital from smaller-cap altcoins to the largest cryptocurrency [1]. The “OTHERS” index, which tracks coins outside the top 10 by market cap, plummeted nearly 19% over 10 days before experiencing a modest rebound [1]. Bitfinex analysts attribute this trend to a growing cautiousness among investors, who are moving capital out of altcoins rather than into them [1].

Despite Ether's 40% rally, which traditionally signals the onset of altcoin rotation, the broader altcoin market has failed to respond [1]. The lack of speculative activity has raised concerns among traders, who are closely monitoring for signs of a potential reversal in sentiment [1].

Nevertheless, some market participants remain cautiously optimistic. Bitfinex analysts noted that the current consolidation phase could precede a larger move, especially if positive macroeconomic developments or renewed ETF inflows shift the market's direction [1]. Crypto analyst Ted highlighted the current pullback as an opportunity to accumulate utility-driven altcoins that could experience significant growth in the future [1]. Similarly, Merlijn The Trader observed that many altcoins are forming chart patterns that could lead to a breakout [1].

The CoinMarketCap Altcoin Season Index, which had reached 55 on July 21—indicating altcoin season—fell to 40 by August 5, signaling a return to a “Bitcoin Season” environment [1]. This metric, which evaluates market sentiment and altcoin strength, shows that investors continue to favor Bitcoin over smaller-cap assets [1].

Market sentiment remains generally risk-averse, with traders rotating capital back into major cryptocurrencies or moving to the sidelines altogether [2]. While some remain bullish on altcoins’ long-term potential, the near-term outlook remains uncertain due to Bitcoin’s underperformance and a broader risk-off environment [2].

Source:

[1] Altcoin Market Struggle to Recover as Bitcoin Stumbles... (https://thecoinrise.com/altcoin-market-struggle-to-recover-as-bitcoin-stumbles-but-hope-for-alt-season-remains/)

[2] Bitcoin Struggles to Hold $115K; Solana, Dogecoin Show... (https://www.coindesk.com/markets/2025/08/05/bitcoin-struggles-to-hold-usd115k-solana-dogecoin-show-relative-strength-as-risk-off-sentiment-lingers)