Altcoin Season marks a phase when the wider altcoin market outperforms Bitcoin by a wide margin. During this window, most alternative tokens post gains that eclipse BTC’s returns. Traders track the Altcoin Season Index, which flags periods when over two-thirds of the top 50 altcoins beat Bitcoin over 90 days.
What Triggers an Altcoin Season?
Several forces can flip market focus from Bitcoin to alts. A drop in Bitcoin dominance (BTC.D) below key thresholds often sends capital chasing smaller-cap projects. Bullish technical breakouts—such as a sustained ETH rally above major moving averages—can draw fresh funds into DeFi and NFT ecosystems. Macro shocks (rate-hike surprises, geopolitical unrest) may shake confidence in BTC’s “digital gold” status and push investors to higher-risk alts seeking bigger upside. These elements combine with on-chain demand shifts to spark a self-reinforcing alt rally.
How to Spot the Start of Altseason in 2025
Watch for a golden cross on the total altcoin market-cap chart, a classic momentum flip signal. Keep an eye on the Altcoin Season Index: readings above 0.5 show that most alts have outpaced Bitcoin over the last quarter. Check ETH/BTC futures volume parity—when Ethereum futures volumes approach Bitcoin’s, it signals a growing appetite for alt risk. The Altcoin Season Index must close above 75. On the chart below, note the point where the line crosses that threshold.
A majority of the top 50 tokens need to outpace Bitcoin over 90 days. That event shows when green bars exceed the black BTC bar on the performance chart. However, this is not the current scene, as we can see, major altcoins like BNB, XRP, LTC, DOG, and many others have been bearish.
When will altcoins season in July 2025 start?
Altcoin season in July 2025 can be predicted through carefully observing Bitcoin dominance versus the total alt market cap. A clear bottom in alt cap alongside a peak in BTC.D marks a rotation of capital. On the dual chart, look for a low in the black line followed by a drop in the pink line.
In July 2025, these conditions align around July 8 through July 12. The Altcoin Season Index closes above 75 on July 8. At that time, 36 out of 50 coins registered gains above 25% in their last 90 days. Total alt market cap finds support near $1.05 trillion on July 5 and bounces by July 9 as BTC.D peaks near 65.8% on July 4 before a drop to 64% by July 10.
That window from July 8 to July 12 offers a clear entry zone. Traders may allocate capital to leading layer-1 tokens such as Ethereum and Solana, plus select layer-2 and DeFi projects. A risk rule should set a stop near the previous alt cap low and lock profit when alt cap surpasses $1.2 trillion.
How to benefit from Altseason in July 2025
- Diversify Core Holdings. Rebalance into leading layer-1 tokens like Ethereum, Solana or Avalanche when momentum tilts in their favor.
- Target Growth Plays. Allocate a portion of capital to promising layer-2 and modular chain projects early in the cycle.
- Apply Risk Controls. Set stop-loss orders at key support zones and define clear profit-taking levels.
- Leverage DeFi Strategies. Use vetted protocols to earn passive yield on select altcoins, but confirm strong security audits first.
- Stay Nimble. Monitor leading indicators weekly and shift exposure toward the top-performing sectors.
One extra gauge comes from the ETH/BTC ratio. A break above 0.065 by July 7 can reinforce index and dominance clues. That ratio holds above its July 1 low only if capital truly rotates. If the ratio falls back below 0.062 by July 15, treat the run as a false start.
A further signal will appear when Ethereum futures volume reaches parity with Bitcoin futures volume. Expect that parity around July 10 if alt season holds. At that point, traders can add a second tranche. This alignment of index, performance chart, market cap rotation, and futures volume reveals the start of alt season. Use this framework to plan entries and exits for July 2025.
