Recent market shifts, including a drop in Bitcoin dominance and a significant increase in Ethereum’s price and ETF inflows, suggest a rotation to altcoins is underway, aligning with Theodorou’s prediction.
Retail traders still have room to profit in this cycle by following historical patterns, despite growing institutional dominance, according to Coinstash co-founder Mena Theodorou.
“If you’re analytical, follow the patterns, and take an emotionless approach, you’re going to do well in the crypto space,” Theodorou told Cointelegraph on Tuesday.
His outlook remains tied to the same structure that’s defined every major crypto cycle: Bitcoin leads, peaks in dominance, and then stalls, giving way to altcoins.
Altseason Next?
According to Theodorou, this phase typically transitions into a full-blown altseason, which tends to be punctuated by a memecoin rally. “At some point, all the memecoins would start to go crazy.”
That also depends on Bitcoin’s dominance, of course, and market indicators are starting to reflect that shift. Ever since Bitcoin hit a new high of over US$122K (AU$184K) early in July, there’s been a drop in dominance, down 7.44 % over the past 30 days.
Ethereum, by contrast, is up 20% in that same window. The broader market seems to be rotating, with CoinMarketCap’s Altcoin Season Index flipping from “Bitcoin Season” to “Altcoin Season”.
While that index is more sentiment-driven than predictive, it does reflect a shift in momentum that aligns with Theodorou’s thesis. When Bitcoin consolidates, traders historically begin reallocating into higher-beta assets like altcoins, hoping to front-run retail interest.
Recently, Ethereum ETFs recorded their largest ever weekly inflow with over US$2.1B (AU$3.25B), as Crypto News Australia reported. It doesn’t seem like the rally for ETH will stop anytime soon. Additionally, Bitwise CIO, Matt Hougan, stated that corporations could acquire up to 5.33M ETH within a year. That’s around US$20B (AU$30.5B).
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