- Binance recorded over 45,000 altcoin deposit transactions in a week, marking the highest 7-day count since late 2024.
- The Altcoin Season Index surged to 51, suggesting traders are increasingly favoring altcoins over Bitcoin after its recent price breakout.
- Ethereum ETFs recorded $73.22 million in net inflows, while Bitcoin ETFs saw outflows, pointing to growing institutional interest in alternative assets.
Altcoin inflows to Binance have surged to their highest level in 18 months, raising speculation of an upcoming altcoin season. The shift in trader behavior follows Bitcoin’s breakout above $120,000.
Rising Exchange Activity Signals Trader Rotation
Altcoin deposits to Binance have climbed sharply, with the 7-day transaction count exceeding 45,000 for the first time since late 2024. This rise in activity suggests traders are preparing for potential moves within the altcoin market, not simply holding.
Bitcoin’s recent surge above $120,000 appears to have been the catalyst. As large caps draw attention, traders often begin rotating profits into altcoins. Historically, this type of behavior has preceded broader altcoin rallies.
Over the last few months, inflow data remained relatively stable, reflecting limited interest in altcoin trading. The current sharp increase now reflects a rising readiness among traders to re-engage with alternative assets.
Altcoin Season Index Crosses Key Threshold
Coin Bureau reported that the Altcoin Season Index has reached 51, a level that marks the early stages of altcoin dominance. The index measures how many altcoins are outperforming Bitcoin over a set timeframe. A value above 50 suggests a potential shift toward alt-driven momentum.
This increase can be taken as a sign that the dominance of Bitcoin is weakening. Altcoins are most likely to gain power when Bitcoin retreats or when it halts after an increase. With activity increasing and sentiment shifting, traders appear to be eyeing returns outside the top asset.
Although the index alone does not confirm a full altcoin season, it aligns with the broader surge in Binance altcoin inflows. The data support the notion that traders are positioning themselves for more movement in the alt market.
ETF Flows and Fed Policy Add Fuel to the Outlook
On August 5, spot Bitcoin ETFs saw $196 million in net outflows, led by Fidelity’s FBTC, which recorded a $99.11 million withdrawal. This marked the fourth consecutive day of outflows from funds focused on Bitcoin. In contrast, Ethereum spot ETFs attracted $73.22 million in inflows, with BlackRock’s ETHA contributing $88.77 million.
This trend reflects a pivot from Bitcoin into Ethereum and, possibly, altcoins. Institutional investors are shifting allocations ahead of expected macroeconomic changes.
One of the most discussed catalysts is the idea of interest rate decreases taken by the U.S. Federal Reserve. If this happens, investors may redirect some funding away from mainstream assets and into higher-risk markets like crypto, specifically altcoins, as they often react in a more pronounced manner to moves in liquidity.
