Altcoin liquidations signal possible altseason

Binance sees altcoins surpass Bitcoin in liquidations in 2025, fueling talk of an upcoming altseason.

Altcoin liquidations surge past Bitcoin signals a new altseason

Altcoin liquidations have overtaken Bitcoin on Binance in 2025. Since early 2025, the cumulative liquidation delta has flipped in favor of altcoins, with activity accelerating in July as traders chase big moves with high leverage. Both long and short positions are being wiped out, illustrating how risk is rising as speculative bets pile into volatile tokens. Binance, as the largest crypto exchange, plays a central role in this altcoin activity and in shaping the market narrative.

Analysts say the trend is notable but not yet a guarantee of a full altseason. The altcoins market cap has broken out of a downtrend for the third time in two years, and sentiment has turned bullish with potential for large rallies in the past patterns. The altseason index sits at 53, above neutral but not in the high territory that signals a confirmed season. Bitcoin dominance continues to fall to around 59.49%, indicating shifting leadership but underscoring the need for sustained inflows to confirm the move.

The shift from Bitcoin to altcoins is thinning out the crowd and inviting more risk. A market driven by leveraged bets can amplify gains, but it also invites sharp reversals if liquidity tightens or new selling pressure hits. The signal matters, yet it is not a guarantee; investors should watch BTC dominance, inflows into retail wallets, and the pace of new money entering alts before declaring a real altseason.

Beyond the technicals, this moment tests trader judgment. High-profile losses, like the $50,000 hit on stETH during a large unstaking queue, remind markets that chasing the next big move comes with real costs. Regulators and risk managers will watch whether this activity stays contained or spills into broader financial markets.

Highlights

The road from signal to season is never straight