In August of this year, Bitcoin reached a new historical high, briefly surpassing the $120,000 mark. However, in contrast to the frenzy surrounding Bitcoin, most altcoins appeared unusually calm, as if the pause button had been pressed. Most small crypto assets are still hovering at low levels, leading many investors to begin questioning whether the so-called "alt season" is over. The actual situation may be more complex than it appears.

From the perspective of capital flow, the siphoning effect of Bitcoin is gradually weakening. Data shows that Bitcoin's market share in the entire Crypto Assets market has decreased from 60% in November last year to the current 51%. If this ratio further drops below 50%, market funds are likely to begin shifting towards other Crypto Assets. Meanwhile, the total market capitalization of stablecoins has exceeded 160 billion USD, and this capital could become a powerful driving force for the altcoin market at any time.

In terms of policy, recent relevant legislation has provided a certain degree of exemption for some meme coins, temporarily avoiding the controversy over their securities nature. At the same time, regulatory agencies have shown signs of a softened attitude towards staking tokens. Moreover, the expectation that the Federal Reserve may cut interest rates in September has generally been interpreted as a positive signal for altcoin markets. Once these factors are triggered, the rise of altcoins may far exceed that of Bitcoin.

The movements of institutional investors are also worth paying attention to. Some traditional financial giants are quietly laying out in the altcoin market and launching tokenized products linked to government bonds, with annual yields between 5% and 7%. They are particularly focused on the Ethereum ecosystem, AI-related tokens, and some meme coins with lower transaction fees. Retail investors, while still inclined to chase highs and cut losses, have clearly become more rational compared to a few years ago, no longer blindly following trends.

Overall, although the altcoin market is currently performing flat, multiple factors are accumulating, which may indicate that a new opportunity period is about to arrive. Investors need to remain vigilant, closely monitor market trends, and carefully assess various risks.