Altcoin Season Stalls as Bitcoin Dominance Rises

Altcoin Season Index Plummets to 34 Amid Bitcoin Resurgence

The anticipated altcoin season seems to be on hold as Bitcoin’s market dominance has surged past 61%. This shift indicates a notable change in market dynamics, with the Altcoin Season Index on CoinMarketCap dropping to 34 out of 100. Typically, a reading above 75 signals a robust altcoin rally, but current trends suggest traders are reallocating their investments back into Bitcoin. This movement is likely influenced by macroeconomic uncertainties and recent fluctuations in the altcoin market. Investors may need to exercise patience until Bitcoin dominance decreases and the Altcoin Season Index shows signs of recovery before the next altcoin surge can occur.

Bitcoin Dominance Set for Potential Bullish Movement

Bitcoin’s market dominance appears to be entering an upward wave, indicating a possible shift in market momentum. Analysts are closely monitoring a potential retest of a descending trendline, which could serve as a strong bullish signal. However, for Bitcoin to maintain downward pressure on altcoins and uphold the overall market structure, it must stay below the critical resistance level of 62.99%. A breakout above this threshold could invalidate bearish predictions and lead to an increase in Bitcoin’s market share, potentially postponing the long-awaited altcoin season that many investors have been eagerly anticipating.

Significant Liquidations in Crypto Market: ETH and XRP Hit Hardest

A sudden downturn in the market has resulted in approximately $735 million in liquidations across crypto futures, with altcoin traders facing the brunt of the losses. Ethereum traders experienced the largest impact, with liquidations totaling $152.78 million, followed by XRP at $88.58 million, while Bitcoin saw $65.29 million in liquidations, according to CoinGlass. This sharp decline caught many leveraged altcoin traders off guard, as they were unprepared for the mild price drops. Over $625 million in long positions were liquidated, reflecting panic selling and profit-taking near resistance levels. Ethereum’s price fell by 3.6% to $3,540, while XRP dropped 6% to $3.25. Analysts attribute the selloff to high leverage and a lack of clear market catalysts.

Understanding the Current Downturn in the Crypto Market

The cryptocurrency market is experiencing a correction following Bitcoin’s recent all-time high. Bitcoin has dipped below the $120,000 mark, currently trading around $118,000, with Ethereum, XRP, and Solana also breaking through key support levels. Analysts suggest that widespread profit-taking by both retail traders and institutional investors is the main driver behind the increased selling pressure across leading assets. Data on network profit and loss indicates significant realized profits for Bitcoin, Ethereum, and XRP since May. Despite this, institutional interest remains robust, supporting long-term positive sentiment. The Altcoin Season Index currently sits at 49, hinting at a potential shift in momentum toward altcoins in the near future.

Record High Liquidity for Ethereum and XRP Despite Low Trading Volumes

While overall trading volumes in the cryptocurrency market remain below their yearly peaks, liquidity for major altcoins like Ethereum and XRP is reaching unprecedented levels. Ethereum’s market depth, a key liquidity indicator, has hit its highest point in 2025, suggesting stronger support for buying and selling activities. XRP is also making headlines with a significant increase in liquidity, backed by a solid order book. This rise in liquidity indicates growing market confidence and deeper trading activity, even as overall volumes remain subdued. Analysts view this trend as a positive sign, suggesting potential price stability or growth for both Ethereum and XRP in the coming days.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.