Bitcoin News Today: Bitcoin Trapped Under $120K as Altcoins Surge, Altcoin Season Index Jumps 220% to 51

Bitcoin remains confined below $120,000, with altcoins capturing trader attention as Ethereum’s trading volume outpaces Bitcoin for the first time since 2022. Analysts note the asset’s repeated failure to break past $119,500 has sown uncertainty, with the critical support level at $115,600 now under scrutiny. A breach could trigger further declines to $110,000–$112,000, where liquidity concentrations may amplify volatility [1].

Open interest in major altcoins has surged to an all-time high of $45 billion since July 2025, reflecting aggressive leverage and capital inflows into Ethereum, XRP, and speculative tokens like meme coins. Ether Wizz highlights this as a sign of shifting risk appetite, with Ethereum holders maintaining firm control above $2,400, signaling long-term conviction despite potential short-term pullbacks [2]. Meanwhile, the Altcoin Season Index—a 90-day performance metric for top 50 altcoins—jumped from 16 to 51, underscoring growing momentum [3].

Bitcoin’s market dominance has dipped below 61%, the lowest since March 2025, as capital flows into smaller cryptocurrencies. BNB hit a record high of $804, up 33% month-on-month, while PENGU, a meme coin, surged over 20% in 24 hours. Altcoins like BONK (+148%) and FLOKI (+119%) outperformed established names, reflecting retail traders’ preference for volatility [1]. However, Ethereum and Solana remain 20% and 30% below prior highs, respectively, indicating unresolved bearish pressure [3].

The U.S. regulatory environment has catalyzed this shift. President Trump’s new crypto law, designed to clarify digital asset frameworks, has spurred institutional participation and market confidence. Binance founder Changpeng “CZ” Zhao acknowledged the Altcoin Season Index as a potential early indicator of broader altcoin rallies but cautioned against overreliance on its predictive power [3]. Conversely, the PUMP token, linked to Solana’s Pump.fun platform, fell below its initial coin offering price, highlighting risks in speculative altcoins during selloffs [1].

Bitcoin’s price action remains constrained by a narrow $115,600–$119,500 range, despite institutional inflows and a technical bull pennant formation. Analysts like Michaël van de Poppe argue the lack of momentum signals waning conviction, with further consolidation likely until a clear directional shift emerges [1]. While some forecasters, including CZ, predict Bitcoin could reach $150,000–$200,000 by 2027, current conditions suggest a more cautious outlook [5].

For now, altcoins dominate the spotlight. As traders rotate capital into high-risk, high-reward assets, the crypto market’s energy has shifted toward Ethereum, meme coins, and AI tokens. This dynamic reflects a broader trend of capital rotation amid Bitcoin’s temporary impasse, with speculative momentum driving short-term gains despite lingering macroeconomic uncertainties.

Sources:

[1] [BNB price Hits A New ATH Before ETH And SOL As ...](https://ts2.tech/en/bitcoin-flirts-with-120k-altcoins-surge-regulators-strike-nft-mania-returns-crypto-roundup-july-23-24-2025/)

[2] [PENGU Takes Flight: Meme Coin Soars 20% as Bitcoin Stalls Below $120,000](https://99bitcoins.com/news/altcoins/bnb-price-hits-a-new-ath-before-eth-and-sol-as-btc-briefly-touches-120000/)

[3] [Altcoin Season Incoming? CZ Highlights Rising Momentum as Bitcoin Dominance Falls](https://ts2.tech/en/bitcoin-flirts-with-120k-altcoins-surge-regulators-strike-nft-mania-returns-crypto-roundup-july-23-24-2025/)

[5] [Florencio Hamor z3ZK's Profile | Binance Square](https://www.binance.com/en/square/profile/Square-Creator-a2fb34bb2f8c)