- Bitcoin dominance nears key resistance, signaling a potential shift toward altcoin momentum.
- Declining U.S. economic uncertainty boosts investor confidence in crypto and equity markets.
A key macro signal may be flashing green, but the crypto market still seems to be holding its breath.
The Economic Policy Uncertainty Index in the U.S. is on a steady decline, marking a potential turning point for risk assets, as reported by Alphractal.
Confidence is up, but prices?
Historically, spikes in this index have coincided with market bottoms for both the S&P 500 and Bitcoin [BTC], with the last major dip occurring around the 5th of April.
As uncertainty eases, investor confidence appears to be strengthening, laying the groundwork for potential rallies across equities and crypto.
Having said that, market prices haven’t caught up with the macro optimism, at least not yet.
Bitcoin, for instance, was trading at $108,420.04 after slipping 0.44% in the past 24 hours, according to CoinMarketCap.
Meanwhile, the S&P 500 also saw red, falling 0.79% to 6,229.98, as reported by Google Finance.
So while confidence is quietly creeping in, prices remain cautious. The mood feels more like pregame than liftoff.
Analysts are anticipating an upcoming altseason
Meanwhile, on-chain analysts have turned their gaze toward altcoins. Joao Wedson, founder and CEO of Alphractal, took to X and noted,
“Altcoins are back to following Bitcoin’s lead.”
He highlighted a noticeable shift in market dynamics, noting that Ripple’s [XRP] correlation with Bitcoin has declined from 0.79 to 0.7, a 10% drop, suggesting it’s becoming slightly more independent of BTC’s movements.
In contrast, Solana [SOL] has grown more in sync with Bitcoin, with its correlation rising from 0.53 to 0.75.
Interestingly, Ethereum [ETH] and Theta Network [THETA] remain the most closely aligned with BTC, continuing to move in near lockstep with the leading cryptocurrency.
Echoing similar sentiments, X user ToraX noted,
Source: ToraX/X
He pointed out that historically, when Bitcoin Dominance (BTC.D) peaks, funds tend to rotate into alts—a dynamic observed in 2017 and 2021.
While market chatter around the onset of altseason is intensifying, data paints a more nuanced picture.
Are metrics telling the same story?
AMBCrypto’s analysis of the CoinMarketCap Altcoin Index, which stood at 27/100 at press time, indicates that Bitcoin continues to dominate the crypto market cycle.
Supporting this, the Bitcoin Dominance (BTC.D) metric hovered at 65.28% as of July 8th, brushing up against a key multi-year resistance.
Source: TradingView
Since mid-2021, BTC.D has followed a clear pattern of higher highs and higher lows, reinforcing an ascending trendline that has withstood multiple corrections over the past three years.
Now, as the metric edges toward the critical 67%–70% range, traders are closely monitoring whether dominance will break higher or begin to roll over.
A failure to reclaim this resistance could mark the early signs of a shift, potentially ushering in a wave of capital into fundamentally strong altcoins.
However, until that reversal is confirmed, altseason remains a hopeful possibility rather than a present reality.
