The crypto market has officially entered altcoin season, with the index rising above 80 earlier today. This level shows that many altcoins are now outperforming Bitcoin in the current cycle.
Simply, the momentum has shifted away from Bitcoin as alternative cryptocurrencies begin taking the lead
This is a major signal that capital could be flowing from the largest cryptocurrency to Ethereum, Solana, BNB, Cardano, and various other digital assets.
Analyst: BTC Dominance Forms Death Cross, Signaling Altcoin Season
According to Altcoin Gordon, a rare Bitcoin dominance death cross has just flashed. Since 2016, this signal has marked the beginning of every major altcoin season.
The latest chart shows the same pattern forming once again. At the same time, the Altcoin Season Index surged to over 80 earlier today.
This reading confirms that altcoins are broadly outperforming Bitcoin, reinforcing the historical link between a death cross in dominance and strong altcoin cycles.
Taken together, these signals point to a potential shift of capital from Bitcoin into altcoins. If past trends hold true, the market could be entering another powerful phase of altcoin season.
Bitcoin Dominance Has Been Dropping for 12 Straight Weeks
Moreover, the setup for altseason is becoming clear. Bitcoin dominance has been trending down for 12 straight weeks, despite the current market corrections.
This steady decline points to growing strength in alternative assets. As per analysis by Virtual Bacon, Ethereum and XRP are leading the way.
ETH/BTC has outperformed Bitcoin throughout August, showing that momentum within top altcoins continues to build.
Looking ahead, the critical factor will be Bitcoin’s ability to maintain its trend and eventually break above $120K.
If that happens, altcoins, especially large caps, are likely to see an even stronger rally in the next leg up.
The Fed Rate Cut
The other driver of the coming altcoin season is Wednesday’s rate cut by the Federal Reserve.
Markets widely expected a shift toward looser monetary policy, which would inject more liquidity into the financial system and increase demand for high-risk assets like cryptocurrencies.
Kyle Shass, founder of MV Global, had noted ahead of Jerome Powell’s speech that a 0.5% rate cut could trigger a much stronger and unexpected rally across the market.
The Rise of Altcoin ETFs
At the moment, the US SEC is reviewing more than 90 applications for spot ETFs tied to different altcoins. These include Solana and Litecoin.
It is noteworthy that within the first hour or going live, Rex Osprey XRP and DOGE ETFs are recording massive volumes.
While the former has already seen a record $31 million in volume, the latter posted $6 million in volume within the first hour.
As a result, many market watchers believe that these ETFs and other altcoin ETFs awaiting approval could drive growth for the underlying cryptocurrencies.
However, analysts at Bitfinex argue that a real growth phase for alternative coins will likely not begin until these funds receive approval.
In addition, earlier reports from CryptoQuant analyst Timo Oinonen highlighted a different perspective. He noted that the era of frequent and widespread “altseasons” may already be over.
At the same time, the US SEC has just approved generic listing standards for crypto ETFs. This important step cuts the approval timeline from 240 days down to only 75 days.
With the new rules in place, exchanges can now list and trade commodity-based trust shares of eligible spot commodities. This includes digital assets, and they can do so without filing a 19b-4 form.
On top of that, Bloomberg ETF analysts Eric Balchunas and James Seyffart shared another positive update.
They revealed that 12 to 15 crypto assets could qualify for ETF approval within the new 75-day window.
Looking further ahead, they also expect a surge of activity. In fact, more than 100 crypto ETFs may launch over the next year.