After a period of quiet, the altcoin market is showing signs of renewed life, with the Altcoin Season Index climbing from 34 to 50. According to crypto trader VirtualBacon, this slow but steady movement suggests that an altcoin season may have already begun, even if it's not yet felt by everyone.
A Quiet Shift
Unlike past altcoin seasons where prices surged across the board, the current momentum is more selective and gradual. This slow pump is accompanied by a slight decrease in Bitcoin dominance, which is currently at 61.5%. This shift in capital from Bitcoin to altcoins is often an early indicator of a brewing altcoin season.
September Fed Meeting as a Potential Catalyst
A key event to watch is the upcoming Federal Reserve meeting in September. There is speculation that the Fed might loosen the Supplementary Leverage Ratio (SLR) rule. If this happens, it could significantly boost market liquidity, which could in turn provide a major lift for altcoins. This potential move could counterbalance the U.S. Treasury's TGA account replenishment, which typically removes money from the market.
Which Altcoins to Watch?
VirtualBacon suggests the rally will be steady rather than explosive and recommends keeping an eye on major altcoins such as Ethereum (ETH), Solana (SOL), Ripple (XRP), and Binance Coin (BNB). However, he warns that smaller altcoins remain high-risk.
A More Discerning Market
Fellow trader Crypto Rover also advises caution, noting that traders are more sophisticated now. He believes that only projects with strong fundamentals will thrive in this new market phase, unlike in previous cycles where even weak projects could succeed on hype alone.
The market remains in a "waiting mode," and the outcome of these upcoming events will likely determine the pace and scale of any future altcoin season.
August 2025, Cryptoniteuae