Bitcoin neared the $120,000 mark on May 23, 2025, signaling a possible shift in cryptocurrency market dynamics as its dominance showed signs of decline. This milestone suggested an emerging altcoin season, with notable growth in altcoins, specifically Hyperliquid (HYPE). Bitcoin's rising price and tapering dominance have generated optimism among altcoin investors, with Hyperliquid demonstrating significant gains, including an 88% increase over the past month.
A prominent whale trader, James Wynn, who has recently invested $800 million in a Bitcoin long position on Hyperliquid, predicted that Bitcoin would likely peak between $118,000 and $122,000 before experiencing a cooldown and sideways movement. This, he stated, could spark the beginning of a robust altcoin season expected to pick up momentum in June 2025.
Supporting this outlook, several market indicators point to improving liquidity for altcoins, such as a decline in Tether's USDT dominance, which correlates with a rise in altcoin market capitalization. While Bitcoin dominance recently strengthened to nearly 64%, making the market temporarily favor Bitcoin, a further decrease in Bitcoin dominance is necessary for a sustained altcoin rally.
Indicators like the ETH/BTC ratio increased by 40%, signaling Ethereum's outperformance against Bitcoin and providing bullish cues for altcoins. However, some analysts caution that not all Bitcoin profits will rotate into altcoins, emphasizing the importance of focusing on leading altcoin projects. Altcoins such as Solana are also showing technical signs that could precede further price rallies.
Overall, the surge in Bitcoin and the growing performance of altcoins like Hyperliquid underscore a dynamic phase that could transform investment strategies, encouraging diversification beyond Bitcoin as an altcoin season potentially unfolds.