Capital is beginning to shift away from Bitcoin toward alternative cryptocurrencies, signaling the potential start of an “altseason,” according to Sygnum, a Swiss digital asset bank. The firm notes that after months of Bitcoin dominance, the market is showing early signs of a broader reallocation of capital, driven by improved regulatory clarity and growing interest in altcoins with tangible use cases and sustainable token models [1].

In its latest quarterly report, Sygnum highlighted that decentralized exchanges (DEXs) have captured 30% of the total spot trading volumes, while DeFi loan balances have surpassed $70 billion. These figures reflect a return of risk appetite and growing confidence in alternative blockchain ecosystems [1]. The bank also observed that stablecoins and institutional tokenization efforts are enhancing Ethereum’s appeal, supported by rising staking activity and inflows into Ethereum-based ETFs [1].

The shift in capital is not uniform across the entire altcoin space. Some speculative assets, such as Fartcoin (FART) and Pump.fun (PUMP), remain disconnected from broader market trends and are largely driven by retail sentiment rather than institutional flows [1]. “Speculative altcoins are retreating while Bitcoin remains stable,” said Ryan Lee, chief analyst at Bitget. This divergence suggests that the current reallocation is more structural and not a broad-based speculative rally [1].

Meanwhile, Bitcoin and Ethereum continue to strengthen their fundamentals despite the ongoing rotation. Bitcoin reached a new all-time high above $123,000 on July 14, supported by strong demand dynamics and the continued accumulation of BTC by spot ETFs, which now manage over $160 billion in assets under management [1]. The ETFs have absorbed more than 110,000 BTC in the past quarter alone, effectively reducing circulating supply and supporting upward price pressure.

Ethereum, too, is seeing a resurgence in institutional interest, with a significant portion of its liquid supply now locked in staking. The recent Pectra upgrade introduced technical improvements and expanded staking capacity, reinforcing the network’s resilience and appeal to institutional actors. Major financial players, including Sharplink, BNY Mellon, and Société Générale, are allocating significant funds to Ethereum-based initiatives, further underlining its importance in the digital asset landscape [1].

Sygnum’s forecast has already garnered industry attention. Cointribune reported the news on July 4, 2025, while Binance included the headline in its trending list on July 23, 2025. Although these references are largely editorial, they reflect a growing consensus around a potential shift in market dynamics [1][3].

As the altseason potentially emerges, investors are advised to closely monitor both regulatory developments and on-chain activity to confirm the broader trend. The coming months will be crucial in determining whether this anticipated shift gains lasting momentum.

Source:

[1] Cointribune – The Altseason Is Finally Knocking At The Door: Sygnum Anticipates The Rotation Of Capital

https://www.cointribune.com/en/the-altseason-is-finally-knocking-at-the-door-sygnum-anticipates-the-rotation-of-capital/ [2] CoinGecko – BTC to EUR: Bitcoin Price in Euro

https://www.coingecko.com/en/coins/bitcoin/eur [3] Binance – Populārākās kriptovalūtu ziņas šodien

https://www.binance.com/lv/square/news/all