Bitfinex: Bitcoin falls to 112,000 USD with no signs of altcoin season

The fact that altcoins did not rally after Bitcoin’s recent drop to 112,000 USD has sparked debate about whether an “altcoin season” is about to happen in the short term.

Bitcoin (BTC) has fallen short term to a level of 112,044 USD on Sunday, then fluctuated sharply over the next few days before reaching a level of 113,839 USD at the time of writing, according to data from Nansen.

This drop occurred just a few weeks after the largest cryptocurrency in the market reached a new high of 123,100 USD on July 14.

“Speculative appetite” is declining across the crypto market

Many large altcoins have also fallen sharply over the past week. Solana (SOL) dropped 9.45%, XRP fell 5.48%, and Dogecoin (DOGE) lost 10.80% in value.

“It is noteworthy that this adjustment did not lead to a wave of buying into altcoin – in fact, it was completely the opposite,” analysts from Bitfinex stated in the market report on Tuesday.

It seems likely that we’ll see a breakout occur on Gold.

Điều này sẽ dẫn đến sự đau đớn trên thị trường #Altcoin, vì tháng Tám thường là một tháng xấu cho các tài sản có rủi ro.

Tuy nhiên, trong những khoảng thời gian đó, mức thấp được thiết lập và đó là thời điểm bạn muốn tích lũy. pic.twitter.com/XOrvizoWF6

— Michaël van de Poppe (@CryptoMichNL) August 5, 2025

These losses occur despite signals that in the past have often been precursors to a bullish altcoin trend.

In the past 30 days, Bitcoin’s dominance rate has decreased by nearly 5.5%, while the price of Ether has increased by 40% — both are signs that traders may be rotating into riskier assets.

An accumulation phase may be approaching

However, the simultaneous decline of altcoins indicates that investors may simply be taking profits rather than continuing to risk with higher volatility assets.

“The surrender of altcoin along with the weakening of Bitcoin indicates that the speculative appetite is declining across the market,” Bitfinex’s report noted and added:

“The OTHERS index — which tracks the broader altcoin market, excluding the 10 largest market cap coins — has fallen by 18.7% in the past 10 days before a slight recovery, indicating that the risk reduction process is rapidly occurring in high beta segments.”

Bitfinex believes that the market may be entering a phase of accumulation, but new macro events or strong capital inflows into crypto ETFs could quickly change the landscape.

Hope for the “altcoin season” is still alive

However, not all analysts believe that the “altcoin season” has ended.

In a post on X last Tuesday, crypto analyst Ted said:

This is the best opportunity to accumulate altcoins with real-world applications before they go bullish.

Trader Merlijn The Trader commented:

Altcoin is accumulating, preparing for a violent breakout. When this spring releases… The game will begin.

He stated that the “altcoin season” chart pattern is currently resembling the correction phases of previous years - often a precursor to a strong bullish trend.

On July 21, the Altcoin Season Index from CoinMarketCap signaled “Altcoin Season” with a score of 55/100. However, by the Tuesday update, this index had shifted to “Bitcoin Season,” falling to 40/100.

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