The past week has been all about strength, not just in crypto, but across global markets. Stocks are pushing to record highs, bond yields are sliding, and the macro environment is starting to feel like a tailwind rather than a headwind. Bitcoin remains just below its all-time highs, holding key levels, while altcoins are showing the first signs of breaking free from their ranges.

With BTC dominance slipping and several major altcoin metrics flipping bullish, the setup for a rotation into alts is becoming increasingly compelling. The pieces are falling into place, now we’re watching for confirmation to trigger the next leg higher.

Here’s what we’ll cover today:

Let’s dive in.

The S&P 500's continued march to record highs demonstrates that markets are betting inflation fears were overblown, providing a supportive backdrop for risk-on sentiment. This resilience in traditional markets, combined with the recent CPI data, creates an ideal environment for Bitcoin's next leg higher.

The two-year Treasury yield experienced a dramatic intraday collapse, falling sharply from above 3.77% to settle near 3.73% as markets increasingly price in Federal Reserve rate cuts. This violent move lower reflects growing confidence that the Fed will be forced to abandon its hawkish stance sooner rather than later, creating an environment historically favorable for risk assets like Bitcoin.

The Congressional Budget Office's latest projections paint a stark picture of America's fiscal future, with debt-to-GDP ratios climbing relentlessly toward 120% by the mid-2030s. This trajectory represents a fundamental debasement of the dollar's purchasing power and validates our core thesis that Bitcoin serves as a superior store of value. As government spending continues to outpace economic growth, the mathematical certainty of currency devaluation becomes increasingly apparent.

Despite the Fed’s ongoing quantitative tightening, its balance sheet remains elevated, around $6.6 trillion as of late July. Fed Governor Christopher Waller suggests there's still room to shrink further, potentially down to $5.8 trillion, before disrupting liquidity frameworks. QE is unlikely to return unless interest rates hit or near zero. Historically, the Fed only resorts to additional asset purchases when it has exhausted traditional rate tools. Right now, economic conditions are not justifying a return to that approach. 

Bitcoin doesn’t need QE to move higher, liquidity from global markets, spot ETF inflows, and ongoing adoption cycles can fuel rallies even in a tightening environment, as seen in previous bull runs where BTC outperformed despite restrictive Fed policy.

Right now, the charts are screaming signals we haven’t seen since the last major altcoin breakout and history says moves like this don’t wait for stragglers.

Miss this week’s setup, and you’ll be chasing the market instead of leading it.