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Bitcoin dominance dropped to 55%, signaling a potential altcoins season.
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Binance’s futures reached a record of $2.6 trillion in August due to institutional flows.
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Gold’s rally is likely to be reaching its peak, allowing altcoins to gain momentum.
Bitcoin’s market shares has dropped from 62% to 55% this summer. This is a seven-point drop, similar to previous cycles when altcoins like Ethereum and Solana attracted investor attention.
According to the Altcoin Season Index (which now stands at 63), conditions are tipped more towards an altcoin-led cycle than a Bitcoin led cycle.
This shift has been accompanied with renewed institutional flows. Solana is attracting treasury allocations while Ethereum continues its gains in the altcoin industry.
Analysts warn that Bitcoin faces two psychological thresholds. Its dominance could rebound, if it pushes to 63% or further slip if it falls below 53%. This scenario would likely favor a rally of altcoins.
Bitcoin’s market shares has dropped from 62% to 55% this summer. This is a seven-point drop, similar to previous cycles when altcoins like Ethereum and Solana attracted investor attention.
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The Institutional Futures Industry is Growing
CryptoQuant reports that Binance is a new source of evidence for institutional appetite. In August, the total volume of futures traded on Binance surpassed July’s record $2.552 trillion.
The increase in long and short positions suggests that hedge funds, other institutional players and others are building up new long and shorter positions.
Bitcoin’s extreme volatility, combined with a slowdown in spot trading, drove many traders to the derivatives market.
Open interest also increased sharply, indicating new capital inflows and not just liquidations. Futures-driven rallies could struggle to hold if there are not enough stablecoin reserves and stronger spot inflows.
Macro Factors: Fed, Gold and the Focus
Markets are also influenced by macroeconomic factors. Analysts point out the upcoming Federal Reserve Meeting, where a possible rate cut could boost risky assets.
Gold’s steady 8% gain in September has highlighted investor caution. Many remain in a risk-off mode.
Crypto analyst Michael van de Poppe believes that gold’s rally has reached a local peak, which could lead to a risk appetite for alternative coins.
Related Solana’s 15x Multiplier Model Predicts $274 Price Target
He said that Ethereum, which has posted 15% gains in September already outperformed the gold and is leading altcoin recovery.
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