Bitcoin Dominance will likely remain under close investor watch in September. Although BTC.D has declined for two consecutive months, altcoin rallies remain inconsistent and fall short of altcoin investors’ expectations.

Data shows that a drop in BTC.D does not always mean the start of an altcoin season.

A Different Perspective on Bitcoin Dominance Decline

Recent data indicates that Bitcoin’s dominance (BTC.D) fell from 65% to 58% in the past month — a sharp decrease. Such a drop typically coincides with rising altcoin market capitalization, fitting the definition of an altcoin season many investors anticipate.

However, the market capitalization of altcoins (excluding BTC and stablecoins) dropped by more than $100 billion to $1.31 trillion over the past month. This trend highlights the complex reality of the cryptocurrency market.

The main reason for this decline is that Bitcoin’s price fell alongside the altcoin market cap. But Bitcoin declined faster than altcoins. Bitcoin’s market cap dropped 11% in August, while altcoins (excluding BTC and stablecoins) fell by 8%.