Bitcoin Slips, Altcoins Stall: Why the Summer Rally Hasn’t Arrived
Bitcoin’s recent decline to $112,044 has not yet triggered the anticipated “altcoin summer,†according to Bitfinex analysts, who link this to diminishing speculative interest.
Despite a partial recovery, the crypto market appears set for consolidation, though falling Bitcoin dominance offers promise of an altcoin comeback in the future.
Bitcoin Price Dynamics and Market Trends
Bitcoin’s price dropped to $112,044 on Aug. 2, 2025, down from an all-time high of $123,091 on July 14, 2025. As of Aug. 6, BTC trades at $113,986, according to CoinMarketCap.
BTC Price Movement (Source: CoinMarketCap)
The 24-hour trading volume reached $60.36 billion, a 9.47% increase from the previous day, a sign of volatility instead of a dramatic sell-off linked to specific events like fresh United States tariffs, though macroeconomic pressures contributed to market uncertainty.
Bitfinex analysts noted that Bitcoin’s decline failed to drive capital into altcoins, a critical indicator of an “altcoin summer.”
Bitcoin’s market dominance currently stands at 61% as of Aug. 6, 2025, down from 65% earlier in 2025, suggesting space for rallies in altcoins, but current market conditions favor consolidation.
BTC Market Dominance (Source: CoinMarketCap)
With Bitfinex reporting over $1 billion in liquidations during the dip, it appears it was a sign of reduced risk appetite.
No Altcoin Rally Yet: Solana, XRP, and Dogecoin Feel the Heat
Major altcoins have faced challenges following Bitcoin’s decline.
Solana (SOL) saw a 9.57% loss, XRP had a 6.27% decline, and Dogecoin (DOGE) fell by 10.83%, all within the last seven days.
As of Aug. 6, DOGE traded around $0.199, down 0.12% in the last 24 hours but down 10.83% over the past week. XRP, at approximately $2.91, could see gains up to $5.50 with future SEC regulatory clarity by mid-August and increasing cross-border payment adoption, although this is speculative.
The CoinMarketCap Altcoin Season Index dropped from approximately 50 on July 27 to 47 in early August and is presently at 38 as of Aug. 6, 2025 showing a bias towards “Bitcoin Season.”
Despite that, altcoins like Toncoin (TON), TRON (TRX), and others remain strong, with TRX poised to perform better due to an upcoming staking ETF. On-chain metrics, including record transfer volumes and falling exchange balances, suggest accumulation that could be setting the stage for altcoin gains.
What’s Next: Consolidation or a New Rally?
Bitfinex analysts predict a period of consolidation unless catalysts like strong crypto ETF inflows or macroeconomic shifts change.
Spot Bitcoin ETFs have seen cumulative inflows of $46.6 billion as of June 2025, per ICRypex, potentially stabilizing markets. Some analysts see the dip as a buying opportunity, pointing to historical August altcoin rallies and on-chain accumulation signs as reasons for optimism.
Bitcoin is expected to trade between $114,000 and $120,000 in August, with the potential to reach $125,000 if ETF inflows and post-halving trends gain momentum, according to CoinDCX.
A further decline in Bitcoin dominance below 59% could trigger altcoin rallies.
