- BTC dominance dropped from 65% to 60% in July after rejecting a seven-year trendline.
- Ethereum saw $296.5 million in inflows, while Bitcoin lost $131.4 million last week.
- ETH ETF products gained $2.12 billion in seven days as altcoin season builds momentum.
Bitcoin dominance has officially cracked again, reigniting speculation of a looming altcoin season. According to a TradingView chart published by HexaTrades, Bitcoin’s market dominance fell from 65.20% to 60.87% in July 2025—a monthly drop of 6.64%. This move marks a third rejection at a long-standing descending trendline first established in 2017. Historically, similar rejections—once in early 2018 and later in mid-2021 had marked the beginning of altseasons and each was accompanied by massive capital inflows into altcoins and a sharp decline in Bitcoin’s dominance.
Source: TradingView
Since 2017, BTC dominance has traded within a large symmetrical triangle, bounded by upper resistance around 72% and lower support at 38%. The early rejections triggered a fall of over 30% points, fueling explosive growth in alternative cryptocurrencies, and the same pattern is being witnessed in 2025. A red engulfing candle confirms the reversal, and if BTC dominance continues its trajectory, it could test the 38.13% lower trendline once again, setting the stage for an intensified altcoin rally.
Glassnode and QCP Capital are flashing bullish signals across on-chain and derivatives indicators, which include rising capital flows into altcoins, particularly Ethereum, as traders and institutions position for what appears to be the early stages of a full altseason.
$131.4 Million Exits BTC While ETH Attracts $296.5M
The crypto market has been witnessing a huge rotation of funds, according to analyst Crypto Rover. Bitcoin recorded net outflows amounting to $131.4 million, while Ethereum recorded $296.5 million. These figures tell of a possible aggressive Romanization of Bitcoin and a shift toward Ethereum as investor sentiment changes amid dynamic market forces.
Rover’s data, based on on-chain exchange flows, confirms that capital is rotating out of Bitcoin and flowing into Ethereum, reinforcing the downtrend in BTC dominance. Responding to Rover’s post, crypto analyst Alva stated that surging Ethereum ETF inflows and bullish sentiment are driving institutions to bet on ETH’s catch-up rally. Alva also noted that while Bitcoin appears to be consolidating as a “reserve asset,” current oversold indicators may signal relief bounces if new buyers step in.
Related: ADA, XRP Surges After Trump’s Announcement: Is it A Start of Altseason?
This capital shift is also visible in ETF data. According to a CoinShares report, Ethereum ETF products received $2.12 billion in inflows during the week ending July 19—nearly doubling the previous record of $1.2 billion. Year-to-date inflows into ETH now stand at approximately $6.2 billion. Meanwhile, Bitcoin ETF inflows also remained strong and totaled $2.2 billion over the same week, indicating high activity in institutional trading across both assets. However, the attention and pace of ETH flows underscore a new wave of interest in Ethereum-led investment products.
Altcoin Season Index Rises to 46 as Market Rotates
According to CoinMarketCap data, the Altcoin Season Index (ASI) now stands at 46, up from 15 one month ago and 32 last week. Although it remains below the 75 threshold that defines a full-blown altseason, the index’s 90-day trend shows steady growth since late June. The ASI peaked at 87 on December 4, 2024, and bottomed out at 12 on April 26, 2025. Yesterday’s high of 55 further supports the upward momentum.
Source: CoinMarketCap
The increasing Altcoin Market Cap (AMC) above $1.6 trillion relates to the interest and inflows in the larger altcoin segment, while upward (long-term) movement in AMC and ASI suggests that the structure is evolving. Investors seem to be diverting finance out of Bitcoin into altcoins, with what institutions demand most, Ethereum being one of them.
