Is Altseason coming? Bitcoin is continuously hitting new highs, and altcoins are starting to outperform.

As Bitcoin (BTC) approaches a new all-time high (ATH), alts are also showing strong momentum, trying to threaten its market dominance.

So, are we currently in the "Altcoin Season"? Have alts already outperformed Bitcoin?

alts surpass Bitcoin

According to Joao Wedson's latest analysis, we may currently be experiencing a mini altcoin season. At the time of writing, 98% of the alts in the market have outperformed Bitcoin in the past 48 hours. This trend has brought the performance of altcoins into the "Altseason" zone, indicating a strong market performance for altcoins in the short term.

Since June, there have been multiple instances of excessive concentration of alts in the market, although not every instance has been able to last for a long time. However, this surge may be more genuine, even though its duration remains uncertain.

Bitcoin is stable, alts are more volatile.

While the price of Bitcoin remains between $110,000 and $112,000, the Alts Performance Index has experienced significant fluctuations, which is also a common characteristic of the mini altcoin season. In addition, there has been a surge in ETF inflows, with inflows for BTC at $200 million and for ETH at $211 million. Meanwhile, the staking ETF for SOL has also shown an upward trend.

Despite the noise and skepticism in the market, these data suggest that perhaps a larger scale and longer-term alts season has quietly begun.

The differences in investment behavior of whales towards Bitcoin and alts

Another factor suggesting that the altcoin season may be approaching is the significant increase in acquisitions by whales compared to retail investors. According to the Whale vs Retail Ratio data, this ratio has remained above 1.1 since the end of June.

During this period, the price of Bitcoin rose alongside altcoins in the market, indicating that the market is in a bull market state. Alphractal's heat map also shows that whale investors are active in multiple alts (such as Algorand [ALGO], Chainlink [LINK], Uniswap [UNI]), while retail investors appear relatively weak and dispersed.

This unbalanced investment behavior may indicate the market movements of whales, especially when the price increase is highly correlated with whale accumulation activities, which could suggest that these major players are preparing for a potential market turn.

The decline of Bitcoin's dominance

Finally, it is worth noting that Bitcoin's dominance further strengthens the possibility of an alts season. The decline in Bitcoin's dominance has broken through the previous high formation and has sent a signal of market reversal, especially after forming a "lower high" and breaking through the trend line. This phenomenon may be a warning signal, suggesting that the market structure may be changing.

Bitcoin's dominance has decreased from a high of 66% to 64%, indicating that funds are flowing into the altcoin market. As Bitcoin's relative strength in the market diminishes, alts are starting to catch up. This trend may reflect the market's preference for higher risk and speculative investments, particularly a preference for high Beta investments.

The current market trend

Currently, traders are focusing more on alts with significant upside potential. Historically, when Bitcoin's market strength weakens, traders typically increase their capital inflow into other crypto assets, which drives further gains in altcoins.