[Analysis] "Bitcoin trading volume drops by 28%… Growing anticipation for an altcoin rally"

Bitcoin (BTC) trading volume saw a significant decrease over the weekend, while expectations are rising in the market for a potential altcoin rally.

On the 16th (local time), crypto-focused media outlet U.Today quoted CoinMarketCap data, reporting that "Bitcoin trading volume plunged by 28% on the day, while its market capitalization saw a slight uptick to $2.34 trillion," and added, "Investor sentiment toward Bitcoin is shifting, with anticipation growing for an upcoming altcoin season."

Additionally, Bitcoin dominance dropped from 65% in May to 59% as of August, a decline of about 5 percentage points. This is interpreted as a sign that capital is moving from Bitcoin to altcoins. Generally, a drop in dominance in a bull market is seen as a signal supporting altcoin growth.

Coinbase Institutional recently stated in a report, "The market is approaching a critical point, with the arrival of a full-fledged altcoin season ahead of September." The total market capitalization of altcoins has remained above $1.4 trillion since early last month, up over 50%. This indicates rising investor attention and capital inflows surpassing those of Bitcoin.

The outlet noted, "August has traditionally been a period prone to bearish movements, so there are expectations that, in the short term, corrections could continue down to around $116,000," adding, "Mid-term, it’s possible we may see a shift to a more bearish trend."