Bitcoin News Today: Bitcoin Volume Falls 28% as Altcoin Season Rises

Bitcoin trading volume has experienced a notable decline, with recent on-chain data indicating a 28% drop in activity, sparking speculation that the market may be entering an altcoin season [1]. Despite this decline, Bitcoin’s market capitalization rose to $2.34 trillion, highlighting the asset’s resilience amid shifting investor sentiment [2]. The fully diluted valuation of Bitcoin now stands at $2.46 trillion, with a circulating supply of 19.9 million BTC and a volume-to-market-cap ratio of 2.71% [3].

Bitcoin’s dominance in the broader cryptocurrency market has also seen a significant drop, falling from 65% to approximately 59% since May, a trend often associated with the onset of altcoin season [4]. This shift in market focus is supported by the rising market capitalization of altcoins, which have surged by more than 50% since early July, reaching around $1.4 trillion [5]. Coinbase Institutional has noted that the market is approaching conditions favorable for an altcoin season, particularly as September draws closer [6].

Analysts suggest that the observed decline in Bitcoin trading volume may reflect a capital rotation toward alternative cryptocurrencies, driven by a combination of market liquidity and technological advancements in altcoin ecosystems [7]. On August 15, 2025, Bitcoin’s price dropped to $119,043, representing a 2.4% decline from recent levels [8]. The broader market mirrored this trend, with 90 of the top 100 cryptocurrencies recording losses amid ongoing uncertainty surrounding U.S. policy [9]. Altcoins such as Solana, XRP, and Ethereum each declined by more than 10% during the same period [10].

However, not all altcoins followed the downward trend. Some managed to post gains, suggesting the early signs of a potential altcoin rally [11]. The Crypto Fear & Greed Index recorded a score of 56, indicating a cautious stance among investors [12]. Meanwhile, macroeconomic analysts have pointed to Bitcoin’s recent price movements as indicators of a potential shift in capital allocation [13].

A flash crash on August 14 further amplified market volatility, with Bitcoin briefly dropping to $118,000 and triggering $577 million in liquidations within a single hour [14]. This sharp movement has intensified speculation that the market is transitioning into a phase where altcoins may outperform Bitcoin in the short term. Investors and traders are now closely monitoring key altcoins such as Solana, XRP, and Ethereum for further clues on the direction of the market [15].

Source:

[1] Bitcoin News Today: Bitcoin faces short-term selling pressure... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-faces-short-term-selling-pressure-rising-exchange-inflows-inflation-concerns-2508/)

[2] Bitcoin News Today: Crypto Market Plummets 2.4% Amid... (https://www.ainvest.com/news/bitcoin-news-today-crypto-market-plummets-2-4-bitcoin-policy-uncertainty-2508/)

[3] The crypto market's decline today (August 15, 2025) stems... (https://www.facebook.com/groups/565383300477194/posts/2628486694166834/)

[4] Crypto Fear & Greed Index records 56 points... (https://bloomingbit.io/en/feed/news/94959)

[5] Cardano Price Prediction: Bulls Target $1.85 to $2.40 as... (https://bravenewcoin.com/insights/cardano-price-prediction-bulls-target-1-85-to-2-40-as-support-holds-firm-at-0-90)

[6] Pi Network Price Drops to $0.37 – Will This Sub-$0.10... (https://coincentral.com/pi-network-price-drops-to-0-37-will-this-sub-0-10-token-surpass-it-by-september/)

[7] Real-Time Crypto News Feed | 24/7 Flash News (https://phemex.com/news)