TLDR

Bitcoin dominance has surged to 65.80%, reaching levels not seen since January 2021.
CryptoQuant data reveals a significant drop in altcoin exchange balances to $1.6 billion.
Historical patterns show that altcoin supply drops often precede strong rallies in Ethereum and Solana.
Ethereum jumped 32% and Solana rose 139% after similar supply movements in early 2023.
Analysts suggest the current market setup closely mirrors conditions before past Altcoin Seasons.

The crypto market shows signs of a shift as Bitcoin dominance hits 65.80%, nearing levels last seen in 2021. While Bitcoin continues to strengthen, recent exchange data signals that the altcoin season may be on the horizon. Market analysts highlight falling altcoin balances on exchanges and historical trends pointing to potential altcoin rallies.

Ethereum Indicators Reflect Historical Altcoin Season Patterns

Ethereum’s market activity has aligned with indicators previously seen before altcoin season upswings, based on exchange data and price patterns. In January 2023, Ethereum’s supply on exchanges fell, and its price jumped 32% in the following weeks. This drop coincided with a broader market movement favoring altcoins over Bitcoin.

As of June 27, the average monthly altcoin exchange flow stands at $1.6B, below the annual average of $2.5B. This moderate flow suggests asset consolidation and growing accumulation potential ahead of the next altseason wave.

On the chart, green circles highlight periods when… pic.twitter.com/VmNjgJLXbG

— Axel 💎🙌 Adler Jr (@AxelAdlerJr) June 27, 2025

Another significant drop in Ethereum reserves occurred in October, followed by an 8% rally and a sustained climb to $4,092. This performance reflected previous cycles, where Ethereum led early gains before broader Altcoin Season trends took hold. Such patterns highlight how ETH acts as a bellwether during accumulation phases.

In each instance, Ethereum’s supply fell below $1.6 billion, aligning with a consistent setup before an altcoin-wide rally. This consistency strengthens the argument for Ethereum’s role in the timing ofthe altcoin season. With ETH’s market behavior now repeating, analysts believe another breakout could follow.

Solana Movements Also Signal a Potential Altcoin Season

Solana has followed a similar trajectory, reflecting patterns that support the Altcoin Season narrative suggested by on-chain data. After the January 2023 supply decline, Solana’s price jumped 139%, indicating renewed investor interest in altcoins. This performance came during a period of reduced exchange inflows, matching earlier altcoin market cycles.

In October, Solana surged 80% after another supply drop, maintaining gains up to $210 in March 2024. Analysts see this behavior as confirmation of previous models where low exchange reserves preceded strong altcoin momentum. These patterns further support the thesis of an approaching altcoin season.

In August 2024, Solana again appreciated 10% before the broader November market rally tied to external events. These consistent supply-demand shifts and subsequent rallies reinforce the possibility that another altcoin season could follow. Analysts note that Solana’s movement often coincides with early altcoin market recoveries.

Bitcoin Dominance May Delay Altcoin Season but Not Prevent It

Despite altcoin data suggesting momentum, Bitcoin dominance remains firm and continues to rise, challenging Altcoin Season expectations. After retesting support at 64%, Bitcoin dominance shows no reversal signals and may reach 71% before easing. Historical trends show that dominance has peaked at 73 73% before altcoin recoveries.

Rekt Capital’s analysis suggests Bitcoin could still extend dominance, which may temporarily suppress altcoin market cap growth. Nevertheless, the altcoin market cap holds strong at $1.1 trillion, showing sustained investor confidence. Altcoin season could follow once Bitcoin dominance begins to decline again.

#BTC Dominance

Now that Bitcoin Dominance has successfully retested 64% as support…

History suggests there won’t be any meaningful pullbacks for Bitcoin Dominance before 71%$BTC #Crypto #Bitcoin pic.twitter.com/8rYPYpwsRb

— Rekt Capital (@rektcapital) June 27, 2025

Although dominance strength persists, exchange flow data signals rising accumulation in altcoins. CryptoQuant data highlights this shift as a historical trigger for Altcoin Season, supported by primary tokens’ price actions. Market watchers remain alert for the next key move in Bitcoin’s dominance.

The post Altcoin Season May Be Near as Exchange Balances Hit Yearly Low appeared first on CoinCentral.

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Filed under: News - @ June 27, 2025 4:32 pm