Capital is continuing to rotate from Bitcoin into altcoins, with the total market capitalization of cryptocurrencies excluding Bitcoin (TOTAL2) reaching $1.5 trillion on Friday. This marks a test of a key higher timeframe resistance level last seen in January 2025.

Although markets may pause at this level, the broader trend could still support a breakout above $1.5 trillion, with the next major milestone being the previous all-time high of $1.72 trillion. A monthly close above $1.51 trillion would mark the strongest closing value for the altcoin index in history.

Cointelegraph has reported a rise in stablecoin activity, with Binance’s USDT and USDC balances hitting $31 billion in June 2025, indicating a significant amount of sidelined capital. This liquidity has continued to enter the market, as centralized exchanges like Binance and HTX recorded stablecoin inflows of $895 million and $819 million this week. This trend suggests growing interest not only in Bitcoin but also in altcoins with higher volatility.

On Wednesday, over $2 billion worth of stablecoins, mostly USDT, were moved to major derivatives platforms, signaling an increased appetite for leveraged trading among more advanced market participants. Tether Treasury’s new USDT issuance supports the idea of growing institutional demand and a willingness to take on more risk.

While Binance accounted for more than 55% of the global trading volume—over $8 billion daily—Bitcoin whale deposits have dropped by $2.25 billion. This may indicate reduced selling pressure on Bitcoin, potentially allowing more capital to shift toward altcoins.

Although Bitcoin remains the main liquidity anchor, the data shows that institutions and high-volume traders could already be positioning for the next major altcoin move.

The broader altcoin market, excluding both Bitcoin and Ethereum (TOTAL3), is still in what some analysts describe as the early phase of an altseason. Currently valued around $1 trillion, one market observer projected that TOTAL3 could reach $5 trillion this cycle, implying a possible 400% gain.

According to anonymous analyst Mags, altcoin market cycles typically unfold in phases—starting with a breakout from prolonged consolidation, followed by a steady uptrend. The most significant gains tend to happen in the final phase, where prices accelerate vertically in a short time frame, often surprising late entrants.

Further supporting this early-stage theory, the Altseason Index shows the 30-day measure has recently crossed the 75 mark, indicating early capital movement into altcoins. However, the 60-day version remains relatively low, suggesting that only a limited number of altcoins have outperformed Bitcoin over a sustained period.

While sentiment is improving and capital continues to flow, analysts note that capturing the full upside potential may depend on careful timing and disciplined execution.

Sources:

https://cointelegraph.com/news/dollar5-trillion-altcoin-season-pending-as-total2-market-cap-hits-dollar1-5t

https://x.com/thescalpingpro/status/1945747824509079904

https://x.com/lookonchain/status/1940960613351804994

https://x.com/IT_Tech_PL/status/1945745746852016260