Altcoin Season Makes a Comeback as Ether Reserves Soar and Bitcoin's Dominance Wanes

As indicated by CoinMarketCap's Altcoin Season Index crossing above 50 for the first time since December, the altcoin season - a period where alternative cryptocurrencies like ether outperform bitcoin - may have finally begun. This resurgence could be fueled by the passage of the GENIUS Act in the US, which provides a regulatory framework for stablecoin issuance and may attract institutional investors to Ethereum and other layer-1 blockchains. According to QCP Capital, treasuries are looking to ether and other L1 coins like SOL, XRP, and ADA as potential alternatives to bitcoin. Companies such as SharpLink Gaming and Bitmine Immersion Technologies have already announced plans to build ether treasuries, collectively holding over 500,000 ETH. The newly established The Ether Machine also plans to go public with a 400,000 ETH treasury. If US regulators approve BlackRock's plan to add staking to its spot ether ETF, it could further enhance ether's appeal and lead to a shift in funds from bitcoin ETFs to ether ETFs. Meanwhile, bitcoin's momentum has weakened, leaving its price directionless near $120,000 and resulting in a sharp decline in its market share. Analysts believe this decline in bitcoin dominance marks a significant technical and psychological shift, suggesting a structural rotation into altcoins. On-chain activity, however, continues to indicate a bullish trend, with wallets of all sizes accumulating BTC. In other news, the US public pension giant OPERS has increased its holdings in Palantir and Strategy, a bitcoin holder. The yen has strengthened due to political uncertainty in Japan, and investors should remain alert to market developments.