Altseason indicator activates while Bitcoin's dominance remains stuck under 60% threshold
An on-chain indicator has triggered a new altcoin season alert while Bitcoin's share of the total cryptocurrency market capitalization remains stagnant beneath the 60% level.
The recent climb of Bitcoin (BTC) to the $86,000 mark during this week has pulled alternative cryptocurrency markets upward as the overall industry market capitalization recovered the $3 trillion milestone.
Key points:
- The Altcoin Cycle Signal from Glassnode registered a fresh "altcoin season" indication after climbing to 81.25 on its 0-100 scale.
- Bitcoin's market share among all cryptocurrency assets, known as Bitcoin dominance, was unable to surpass the 60% threshold and has remained within a confined range throughout the last month.
- This past Monday witnessed the largest single-day capital inflows for both Bitcoin and Ether ETFs since October 2025.
Altcoin Cycle Signal shifts to indicate altcoin outperformance versus Bitcoin
An exclusive indicator developed by blockchain analytics platform Glassnode has generated a fresh "altcoin season" notification this week following the recent positive momentum in cryptocurrency markets.
The Altcoin Cycle Signal from Glassnode, which measures the combined market capitalization of the top 250 largest digital currencies in relation to Bitcoin, has switched to indicating altcoin superiority in performance. The phenomenon known as altcoin season — commonly referred to as 'altseason' within cryptocurrency communities — describes time periods during which alternative cryptocurrencies surpass Bitcoin in collective market capitalization expansion. Glassnode's indicator produces "altcoin season" notifications whenever the relative market cap expansion of the 250 biggest altcoins, with stablecoins excluded, temporarily exceeds that of Bitcoin. The specific methodology utilized for this calculation has not been made public.
As of Monday, the seven-day rolling mean measurement of the Altcoin Cycle Signal registered 81.25 on its standardized 0-100 scale.
"The first rally in August saw altcoins stay relatively flat while BTC moved. However, today's rally has ignited the full breadth of the altcoin market," Glassnode reported in a post on X.
The aggregate market capitalization of alternative cryptocurrencies hit $1.19 trillion this past Tuesday, representing the highest point achieved since the end of January. The market cap of altcoins has grown by 33% beginning Aug. 19, the date when cryptocurrency markets experienced sudden upward movement following a US Treasury announcement regarding interventions in bond markets.
In the meantime, Bitcoin's share of the overall cryptocurrency market capitalization has remained confined to a tight trading band since that time, and presently stands at 59.7% compared to 59.2% recorded on Aug. 19.
Discussing the present market situation, trading analyst and industry commentator Matthew Hyland characterized a condition of "complacency" existing among Bitcoin holders, putting forward the view that dominance had already established a macro peak upon reaching 66% in June 2025. In his Saturday commentary, he contended that market participants have continued to resist acknowledging Bitcoin's failure to advance against alternative cryptocurrencies from that point forward.
Cryptocurrency ETFs experience widespread resurgence in capital inflows
Exchange-traded funds focused on cryptocurrencies (ETFs) demonstrate a comprehensive recovery in investor appetite spanning both Bitcoin and alternative cryptocurrency investment products during this week.
This past Monday, spot Bitcoin ETFs available in the United States recorded aggregate capital inflows totaling $999 million, whereas Ether (ETH) ETFs attracted $270 million. For both categories, these daily figures represented the most substantial amounts witnessed since October 2025, according to information provided by Farside Investors, an investment firm based in the United Kingdom.
As previously documented by Cointelegraph, the collective cost basis for Bitcoin ETF market participants was positioned just beneath $86,000 at the conclusion of the previous week, with the BTC/USD trading pair now working to establish that price point as a support level.
