A closely watched crypto market indicator has flashed a fresh altseason signal as Bitcoin and altcoins extend their recent gains.
Bitcoin climbed to around $86,000 this week, helping lift the broader crypto market back above a total valuation of $3 trillion.
At the same time, Bitcoin dominance has remained below 60%, increasing expectations that altcoins could continue outperforming.
Glassnode Altcoin Signal Turns Bullish
Glassnode’s Altcoin Cycle Signal has shifted in favor of altcoins after reaching 81.25 out of a possible 100.
The indicator compares the market capitalization of the 250 largest cryptocurrencies with Bitcoin.
An altseason signal appears when the combined market cap of the largest altcoins, excluding stablecoins, grows faster than Bitcoin over a given period.
Glassnode has not disclosed the full methodology behind the indicator.
The seven-day rolling average of the Altcoin Cycle Signal reached 81.25 on Monday, placing it firmly in territory associated with stronger altcoin performance.
Altcoin Market Cap Climbs to Multi-Month High
Glassnode said the latest rally has spread across a much wider portion of the crypto market compared with earlier moves.
During Bitcoin’s August rally, altcoins remained relatively subdued. The latest advance, however, has triggered broader participation across the sector.
The combined altcoin market capitalization climbed to around $1.19 trillion on Tuesday.
That marked its highest level since late January.
Altcoins have added roughly 33% in market value since Aug. 19, when crypto markets rallied following an announcement from the U.S. Treasury related to bond market interventions.
Bitcoin Dominance Remains Below 60%
Bitcoin dominance, which measures Bitcoin’s share of the total crypto market, has remained relatively stable over the past month.
It currently stands near 59.7%, compared with approximately 59.2% on Aug. 19.
Importantly, Bitcoin dominance has failed to break back above the 60% level.
That has encouraged speculation that capital may be rotating toward altcoins rather than remaining concentrated in Bitcoin.
Trader and commentator Matthew Hyland has argued that Bitcoin dominance may already have reached a longer-term peak after climbing to around 66% in June 2025.
He suggested that some Bitcoin investors have been slow to acknowledge the cryptocurrency’s weaker relative performance against altcoins since that period.
Crypto ETF Inflows Strengthen Market Sentiment
Crypto exchange-traded funds have also seen a broad rebound in investor demand.
On Monday, U.S. spot Bitcoin ETFs attracted combined inflows of approximately $999 million.
Meanwhile, spot Ether ETFs recorded around $270 million in net inflows.
For both Bitcoin and Ether ETFs, the daily totals were their strongest since October 2025.
The renewed ETF demand has added further support to the broader crypto market rally.
Bitcoin Tests $86,000 as Support
Bitcoin is now attempting to establish the $86,000 area as a stronger support level.
That price is particularly important because the average cost basis of U.S. spot Bitcoin ETF investors was recently estimated at just below $86,000.
A sustained hold above that level could help maintain positive sentiment across the crypto market.
Meanwhile, the combination of a high Altcoin Cycle Signal, Bitcoin dominance below 60% and stronger ETF inflows is strengthening expectations that altcoins could continue gaining relative momentum.
