The Altseason Is Finally Knocking At The Door: Sygnum Anticipates The Rotation Of Capital

Signals are multiplying in the crypto ecosystem. After months of overwhelming Bitcoin dominance, altcoins are showing signs of awakening. Sygnum, the Swiss digital bank, anticipates a major rotation of capital. Could this long-awaited altseason finally be starting?

• Sygnum anticipates a shift towards altcoins, driven by regulatory clarity and the decline of Bitcoin dominance.
• Decentralized exchanges (DEXs) reach 30% of spot volumes, while DeFi loans exceed $70 billion, illustrating a return of risk.
• Stablecoins and institutional tokenization strengthen Ethereum’s appeal, supported by staking and ETF inflows.
Altcoins Regain Ground Against Bitcoin’s Declining Dominance Sygnum, the Swiss bank specializing in digital assets, foresees a strategic turning point in the crypto markets. In its latest quarterly report, the institution highlights clear signs of a shift in favor of altcoins, after a turbulent period marked by geopolitical tensions and budgetary instability in the United States. These uncertainties triggered, early in the year, a wave of selling on altcoins. But recently, the tide is turning. Are we on the dawn of an altseason? Bitcoin dominance, which had reached an unprecedented peak since 2021 amidst this macroeconomic pressure, is beginning to weaken. It has recently dropped by more than 6%, reflecting a gradual redeployment of capital toward alternative cryptos. "As regulatory clarity extends to altcoins, capital could shift toward projects with concrete economic uses and sustainable token models," analyzes Sygnum. This trend is accompanied by an increasingly clear regulatory environment. The U.S. SEC notably clarified a major point: Ethereum staking does not fall under securities law. A tacit green light for institutional investors. Following this improvement, DeFi is booming. DEXs have captured 30% of the market’s spot volumes, driven by a wave of memecoins that have boosted trading to $530 billion. However, this dynamic does not seem to concern all altcoins. Some purely speculative assets are showing marked fatigue, out of sync with the more structural trend mentioned by Sygnum. "Speculative altcoins are retreating while Bitcoin remains stable," explains Ryan Lee, chief analyst at Bitget. "We observe that tokens such as Fartcoin (FART) and Pump.fun (PUMP) are less aligned with the market beta overall and reflect more high-volatility microcycles, driven by sentiment. These assets are mainly fueled by retail enthusiasm and community dynamics, rather than institutional flows or macroeconomic narratives." Bitcoin and Ethereum Strengthen Their Fundamentals Despite Sector Rotation Paradoxically, this shift towards altcoins is accompanied by continuous strengthening of the two main cryptos. Bitcoin continues its ascent, supported by a liquidity dynamic considered “extremely bullish” by Sygnum. A persistent imbalance between supply and demand continues to push prices upward. On July 14th, Bitcoin even hit a new all-time high, surpassing $123,000. Bitcoin Spot ETFs perfectly illustrate this institutional appetite. These funds have now exceeded $160 billion in assets under management, absorbing alone more than 110,000 BTC during the last quarter. This major extraction from circulating supply fuels buying pressure on the markets. Ethereum, for its part, is experiencing a spectacular revival of institutional interest. ETH balances on exchanges are dropping, while inflows to ETFs are intensifying. Nearly 30% of the liquid supply is now locked via staking. The recent “Pectra” upgrade raised staking limits and brought several technical improvements, thus consolidating the network’s robustness. Institutional adoption is also accelerating among major Wall Street players. Sharplink plans to allocate $1 billion in ETH. Meanwhile, BNY Mellon, Société Générale, and a stablecoin initiative supported by Donald Trump choose Ethereum as their issuance platform. Sygnum thus estimates that Ethereum has “definitely broken its long-term downtrend.” In short, between clarified regulation, traction on Ethereum, and the rise of stablecoins, the Altseason could indeed be imminent.

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Source: The Altseason Is Finally Knocking At The Door: Sygnum Anticipates The Rotation Of Capital on July 30, 2025.

Frequently Asked Questions (FAQ)

What is Sygnum's outlook on the crypto market? Sygnum, a Swiss digital bank specializing in digital assets, anticipates a strategic shift in the crypto markets, with capital potentially rotating towards altcoins. This outlook is driven by increasing regulatory clarity and a weakening of Bitcoin's dominance. What factors are contributing to a potential altseason? Several factors are contributing to the anticipation of an altseason, including improved regulatory clarity, particularly regarding Ethereum staking, which is seen as a tacit green light for institutional investors. The growth of Decentralized Exchanges (DEXs) and significant DeFi loan volumes also indicate a return of risk appetite in the market. How is Bitcoin's dominance changing? Bitcoin's dominance, which had reached a peak influenced by macroeconomic pressures, has begun to weaken. It has reportedly dropped by over 6%, suggesting a redeployment of capital towards alternative cryptocurrencies. What is the sentiment regarding speculative altcoins versus structurally sound projects? While there's a broader trend favoring altcoins, some purely speculative assets are showing signs of fatigue. This suggests that while the market may be entering an altseason, the focus is shifting towards projects with concrete economic uses and sustainable token models, rather than purely sentiment-driven, high-volatility assets. How are Bitcoin and Ethereum performing amidst this market rotation? Paradoxically, both Bitcoin and Ethereum are showing strengthening fundamentals. Bitcoin's price is supported by strong liquidity dynamics and consistent demand, evidenced by its new all-time highs and significant inflows into Bitcoin Spot ETFs. Ethereum is experiencing a revival in institutional interest, with decreasing exchange balances, increasing ETF inflows, and a substantial portion of its liquid supply locked in staking, further solidified by recent network upgrades.

Crypto Market AI's Take

The anticipation of an altseason, as highlighted by Sygnum's report, aligns with broader market sentiment driven by increasing institutional adoption and regulatory clarity. At Crypto Market AI, we leverage advanced AI agents and sophisticated market analysis tools to help navigate these shifting dynamics. Our platform provides real-time data, predictive analytics, and automated trading strategies designed to capitalize on emerging trends, whether it's the rotation of capital into promising altcoins or the continued strength of established assets like Bitcoin and Ethereum. We aim to empower both individual and institutional investors with the insights needed to make informed decisions in this evolving market landscape. Explore our AI-driven crypto trading bots for automated strategies or delve into our market analysis for deeper insights.

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