Alt Season’s Awakening

Altcoin enthusiasts are buzzing with excitement as signs point toward a potential breakout. Ethereum (ETH) has seen a significant increase, exceeding 20% in the past week. Other altcoins such as Solana (SOL), Dogecoin (DOGE), and Binance Coin (BNB) are closely following suit. Chainlink’s LINK token experienced a notable surge of 30% within the same period. Could this signal the much-anticipated arrival of alt season?

A Challenging Bull Run for Altcoins

The year 2025 has been exceptional for Bitcoin (BTC), with the leading cryptocurrency experiencing steady growth and reaching a new all-time high of approximately $122,838 on July 14. This surge was fueled by increasing interest from institutions and a favorable regulatory landscape in the United States.

However, altcoins have not enjoyed the same success, remaining significantly below their previous peak values. Ethereum’s comparatively weaker performance has stirred debates within its community, with many questioning whether the discrepancy between its technology and market price poses a fundamental problem.

Just as ETH’s price began to demonstrate upward momentum, Arthur Hayes, a well-known trader and former CEO of BitMEX, caused concern among ETH holders. He sold 2,373 ETH from his holdings, anticipating short-term challenges for the second-largest crypto. He believed its value would test the $3,000 level, based on a weaker-than-expected jobs report and a temporary decline in global liquidity.

Those who maintained their ETH positions (“HODL”) are now experiencing a wave of optimism. The price of ETH has jumped by over 50% in the past month, with some prediction platforms setting targets above $60,000. Even Hayes acknowledged his misjudgment on social media, tagging Tommy Lee’s Fundstrat, currently the largest ETH holder, stating:

“I had to repurchase all of it. Can you forgive me? I swear I will never sell for profit again.”

Is Alt Season Here at Last?

With Hayes’ renewed confidence, the potential inclusion of BTC and other digital assets in 401(k) retirement plans, and prominent Ethereum supporters such as Vitalik Buterin and Bankless expressing confidence in the recent surge, the question arises: is the long-awaited alt season finally upon us?

Early indicators certainly suggest that may be the case, with numerous smaller altcoins showing gains across the board. However, before getting too excited, it’s worth remembering that this alt season could differ from previous ones. As Ito Shimotsuma, a well-known day trader and LINK proponent, observes:

“Each #Altseason is less impressive than the last. That’s why I recommend prioritizing your own research (DYOR). Back in 2017, nearly any ICO saw a 100x increase. In 2021, many VC-backed altcoins jumped 50x-100x. This time around, only truly selective altcoins will outperform. Look for ones with compelling narratives and revenue-sharing models.”

Another prominent altcoin trader, Miles Deutscher, also advocates for caution, confirming that a “mini” alt season appears to be in progress, but warns to be mindful of a potential rotation back into Bitcoin when it hits the $120,000-$140,000 range.

Benjamin Cowen, founder of Into the Cryptoverse, expresses a less optimistic perspective regarding altcoins, advising:

“This isn’t alt season. This is ETH season. Let’s avoid mixing up the two.”

Has Bitcoin’s Bull Run Concluded?

With Ethereum and other altcoins showing growth, Bitcoin’s performance has been comparatively lower recently, leading to a decline in Bitcoin dominance. At the time of writing, Bitcoin dominance stands at 59.2%, after remaining above 60% for several months.

Ecoinometrics, a Bitcoin macro strategy analyst, suggests that Bitcoin’s correlation with the Nasdaq stock exchange is contributing to the recent plateau.

“Bitcoin’s correlation with the Nasdaq explains its recent behavior. When stocks experienced a significant decline late last week, Bitcoin followed suit. This is consistent with elevated correlation levels. Now that the Nasdaq is resuming its upward trend, Bitcoin is also moving in tandem.”

As we move into the coming week, the broader macroeconomic landscape will be closely monitored to determine Bitcoin’s next move and the potential duration of this alt season. Whether it’s a true alt season or simply “ETH Season” remains to be seen, and traders would be wise to do their own research and exercise caution when allocating capital.

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