Key Insights
- Bitcoin whales have sent 61,000 BTC to exchanges lately, meaning they are taking profits.
- BTC dominance fell from 64% to 60%, which shows a shift toward altcoins.
- Ethereum, Solana, and meme coins show substantial gains as the altcoin season begins.
There is an ongoing surge in whale activity, which may be signaling the start of a new altcoin season. On July 17, more than 61,000 BTC was transferred to exchanges in a single day. This might have triggered the 4% drop in Bitcoin’s price.
As BTC consolidates, capital is rotating into altcoins like Ethereum and Solana. This timing aligns with an apparent decline in Bitcoin dominance, a classic sign of an altcoin surge.
Bitcoin Whales Trigger Altcoin Season Shift
CryptoQuant data showed that Bitcoin whales, or wallets holding over 100 BTC, moved large amounts to exchanges on July 17. One transfer alone sent 32,300 BTC within just one hour. And that followed two earlier transactions of 15,800 BTC and 13,400 BTC.
Historically, these are classic signs of profit-taking, especially after Bitcoin hit an all-time high of $123,000 on July 14. After these moves, Bitcoin’s price fell between $117,000 and $118,000. It has held near $115,000 since then.
More importantly, the Bitcoin dominance index (BTC.D) fell sharply from 64% to 60% over four days. For some context, this metric measures Bitcoin’s market share relative to all other cryptocurrencies.
A decline in Bitcoin often signals a shift in investor strategy. Funds start flowing into alternative assets, marking the early signs of an Altcoin season.
Altcoin Season Index Surges as Capital Rotates from BTC
Altcoin seasons are a period when altcoins outperform BTC across the board. One of the clearest signs that this is happening now is the rise of the Altcoin Season Index. It jumped from 32 to 49 in less than a week.
Meanwhile, Ethereum, Solana, and XRP have seen double-digit weekly gains. However, the meme coin market cap jumped by 8% in a single day to nearly $90 billion.
These gains aren’t just a fluke. Historically, after a strong BTC rally, profit-taking by whales leads to capital flowing into smaller tokens. That’s exactly what the current data shows.
BTC Consolidates While Altcoins Rally
Bitcoin is entering a cooling-off phase. Support around $115,000 has so far been held. However, if whales continue to sell, more downside pressure could follow.
On the other hand, the altcoin market is heating up. Ethereum’s rising utility in DeFi and Solana’s strong technical breakout are attracting new inflows. Even meme coins, which are often driven by retail sentiment, are on the rise.
This isn’t the first time the market has seen this pattern. Whenever Bitcoin stabilizes after a rally, altcoins tend to benefit. The drop in BTC dominance is one of the best signals that this change is happening again.
Ethereum, Solana, and Others Lead the Charge
Ethereum is seeing a surge in demand, especially as regulatory changes push yield-seeking investors away from stablecoins. Solana has also broken out of a major technical pattern and shows substantial indications of more room to grow.
The combination of technical breakouts, rising volume, and improved sentiment fuels this early altcoin rally.
The recent whale movement of over 61,000 BTC to exchanges triggered a pause in Bitcoin’s upward moves. At the same time, Ethereum, Solana, and other altcoins began to shine.
Altcoin season is in its early stages. Also, it was ushered in by the decline in Bitcoin dominance and increased capital flowing into smaller assets. In other words, if the current trends continue, altcoins may outperform BTC more and more soon.
