rewrite this title Altcoin Season Signals Strengthening as Bitcoin Rises to New Records

Bitcoin (BTC) reached an all-time high of $118,837 today. However, as Bitcoin hit record prices, the asset’s market dominance remarkably retreated from 66% to 64.5% in July, signaling a noticeable divergence. This development has fueled expectations of increased activity and capital rotation into altcoins.

This promising development for altcoin investors is supported by the altcoin market capitalization rising by approximately 10% since early July, surpassing $1.2 trillion. Even during the last three-day period when BTC broke new records, BTC dominance continued to decline. These data suggest that altcoins are gaining value more strongly compared to Bitcoin, indicating a potential altcoin season is approaching.

Analysts Emphasize Altcoin Season

Market experts assert that if the dominance rate continues to fall as Bitcoin’s price begins to move sideways, a strong rally, especially for small and medium-cap altcoins, could be triggered. In this scenario, the 50-day and 200-day exponential moving average (EMA) levels stand out as important indicators.

It is estimated that major altcoins like Ethereum (ETH), Solana (SOL), and memecoins could also record significant gains in this situation.

Increasing Stablecoin Amounts on Exchanges Support Altcoin Demand

CryptoQuant reported that stablecoin reserves like USDT and USDC remain high, totaling $31 billion. Simultaneously, the decrease in BTC reserves on exchanges indicates that investors are holding their assets in cold wallets for the long term, while their stablecoin holdings are being kept ready for altcoin purchases.

This dual situation reinforces expectations that the altcoin market is on the cusp of a new movement. However, the repeated declarations of an “altcoin season” in recent years that did not materialize cause investors to remain cautious.

Arthur Hayes: “Altcoin Season Is Nigh”

Arthur Hayes, former CEO of BitMEX, had previously warned of short-term risks in recent weeks, pointing to the U.S. Treasury’s TGA (Treasury General Account) replenishment program, citing its potential to cause liquidity contraction. However, with Bitcoin reaching new peaks, he stated that these concerns have become invalid. In a statement on his X account on July 11, Hayes said that Bitcoin’s record-breaking performance signals a shift in the trend.

According to Hayes, Ethereum could take the lead after the current rally. This scenario aligns with the expectation of capital rotation observed in past cycles. Hayes stated that an altcoin season is now imminent, saying, “Get ready, a big alt season is upon us.” He believes that since Bitcoin has surpassed the $110,000 level, the next leg of the cycle could be a strong altcoin-based rally.

Macroeconomic Expectations and Trump’s Policies Also Factors

Another factor triggering Hayes’ bullish expectation is the improvement in macroeconomic conditions. The expectation that U.S. President Donald Trump will implement policies to ease tariffs could improve the global trade outlook and increase interest in risky assets. This, in turn, could revitalize interest in crypto assets.

In the long-term outlook, Hayes believes Bitcoin could reach $250,000 by year-end, and even $1 million by the end of Trump’s current presidential term. Altcoin activity could play a significant role in terms of price momentum during this process.

Altcoins Are Already Outperforming Bitcoin

Many altcoins in the market have already started to outperform Bitcoin’s performance. Many altcoins like SEI, ENA, ADA, and HBAR have seen rises between 10% and 20% in the last 24 hours. However, the Altcoin Season Index is still at 30 out of 100, and while Bitcoin appears dominant, some analysts suggest that this balance could shift rapidly. Investors are now allocating more capital to altcoins as they diversify their portfolios.

Amidst this environment, a familiar outburst came from Peter Schiff. The Bitcoin critic argued that investors should buy silver instead of BTC. In a post on July 10, Schiff claimed that Bitcoin had peaked, calling to “Get out of BTC, buy silver.” He asserted that silver had risen 2% to surpass the $37 level, while BTC was in a speculative bubble. However, the crypto community largely disregarded Schiff’s calls and criticized him, recalling his similar past warnings.

Bitcoin is currently the largest crypto asset with a market capitalization of $2.35 trillion, while typical altcoin season signals have re-emerged. When institutional investment, a resurgence in retail interest, and positive signals from technical indicators combine, crypto markets may have entered a new bull run.

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