The tepid recovery of altcoins following the correction of the leading cryptocurrency has cast doubt on the continuation of the altcoin season, according to analysts at the Bitfinex exchange.
On August 3, Bitcoin’s price briefly dipped to ~$112,000. At the time of writing, the price of the digital gold stands at $114,213 (-0.5% over the day), according to CoinGecko.
How Are Altcoins Faring?
Over the week, Solana fell by 7.8%, XRP by 4.7%, and Dogecoin by 8.4%. Bitfinex analysts noted that recent Bitcoin price movements have not led to a sustained increase in demand for alternative coins.
The decline occurred despite signals that have historically preceded sector rallies. Over the past 30 days, Bitcoin’s dominance has decreased by nearly 5.5%, while Ethereum’s price has risen by 40%.
According to Bitfinex analysts, the simultaneous drop in quotes indicates profit-taking by investors rather than a shift to riskier assets. They pointed to a decrease in “speculative appetite” across the market.
The OTHERS index, which tracks altcoins outside the top 10, has fallen by 18.7% over the past ten days. Experts believe the market is moving towards consolidation. New macroeconomic drivers or an influx of funds into crypto ETFs could change the situation.
Other Opinions
Some experts disagree with the notion of the altcoin season ending. An analyst known as Ted described the current situation as “the best opportunity to accumulate utility coins.”
#AltSeason Index is looking like this, and people are calling for a top.
We’re in a post-halving year, and yet it’s #Bitcoin season.
This is your best opportunity to stack utility alts before they go parabolic. pic.twitter.com/bkHPAK0ZaK
— Ted (@TedPillows) August 5, 2025
His colleague, under the pseudonym Merlijn The Trader, also anticipates a “sharp breakout” for altcoins.
ALTCOIN SEASON IS CHARGING.
We’re back in the same zone that birthed 5x–20x moves in 2019 & 2020.
BTC dominance peaking. Alts coiling for a violent breakout.
When this spring releases… it’s game on. pic.twitter.com/lPLoKc6dYe
— Merlijn The Trader (@MerlijnTrader) August 5, 2025
Analyst and MN Trading founder Michaël van de Poppe suggested a forthcoming breakout in gold prices. In his view, this event would pressure the altcoin market.
It seems likely that we’ll see a breakout occur on Gold.
That would result into pain on the #Altcoin markets, as August tends to be a typically bad month for risk-on assets.
However, during those periods, lows are set and that’s the moment you want to accumulate. pic.twitter.com/XOrvizoWF6
— Michaël van de Poppe (@CryptoMichNL) August 5, 2025
The expert noted that August is traditionally considered an unfavorable month for risk assets, including digital currencies.
Van de Poppe emphasized that local lows are formed during such periods, calling it the best time to accumulate positions.
On July 21, the CoinMarketCap Altcoin Season Index was at 55 out of 100, indicating an “altcoin season.” By August 6, the figure had fallen to 35 points, entering the “Bitcoin season” zone.
What About Bitcoin?
The correction occurred a few weeks after reaching a new all-time high above $123,100.
Analysts at Glassnode noted a weakening upward momentum and a decline in investors’ risk appetite.
The RSI index fell from 47.4 to 35.8, entering oversold territory. Selling pressure increased, and spot trading volume decreased from $8.4 billion to $7.5 billion, indicating low activity and liquidity.
On-chain indicators show mixed dynamics. The number of active addresses rose by 3.6% to 729,000. Meanwhile, network transfer volume fell by 13.9%, and fees decreased by 14.4%, signaling an overall lull.
Capital inflow into the asset remains strong but is slowing. Profitability indicators have declined: the share of supply “in profit” fell to 93.6%. This reflects more cautious investor sentiment.
Glassnode concluded that the market has shifted from euphoria to reassessment. Oversold conditions and potential seller exhaustion could lay the groundwork for a rebound. However, the market structure remains fragile and vulnerable to external negative factors.
Back in July, CryptoQuant CEO Ki Young Ju stated that the Bitcoin cycle theory no longer holds. The expert acknowledged the inaccuracy of his previous forecasts.