Key Points
- An altcoin rally might be delayed until 2025.
- Bitcoin continues to outperform most altcoins.
The altcoin season index suggests a potential delay in the anticipated altcoin rally.
In recent times, all top altcoins have experienced price corrections.
Market Volatility and Bitcoin’s Dominance
The cryptocurrency market has seen some volatility in the past week, mostly on the downside. Many had anticipated an altcoin season, however, recent data indicates that investors may have to wait longer for this to occur.
Some are even predicting that we may not see an altcoin summer until 2025.
Alphractal, a well-known data analytics platform, shared a significant update via a tweet. According to the tweet, only a few altcoins have outperformed Bitcoin in the past 30 days.
Typically, when Bitcoin’s price increases and stabilizes, some altcoins start to shine. However, over a 90-day period, there is still no sign of an altcoin season in this cycle.
Altcoins’ Performance
Meanwhile, Bitcoin’s dominance continues to increase, which is justified given the underwhelming performances of most altcoins.
Even though Bitcoin’s value has somewhat decreased recently, altcoins have declined even more, reinforcing the prediction that Bitcoin will continue to gain market share.
In just one week, Bitcoin’s dominance increased by 1%, and at the time of writing, the metric was over 56%.
In addition, an analysis revealed that the altcoin season index was at 27. It is considered to be a Bitcoin season if the metric is near or below 25. Conversely, an altcoin season is indicated when the metric reaches 75.
These datasets suggest that it might take longer for an altcoin season to arrive.
To verify if altcoins could start a rally, an assessment was made on the states of Ethereum, BNB, and Solana.
According to Santiment’s data, Ethereum’s weighted sentiment dropped last week, indicating an increase in bearish sentiment.
Interestingly, despite the price decline, BNB’s weighted sentiment remained high. A similar trend was observed on Solana’s chart.
This suggests that investors remain confident in BNB and SOL, anticipating a price increase soon.
Upon checking each altcoin’s derivatives metrics, it was found that while BNB and SOL’s weighted sentiment increased, their long/short ratios dipped.
A dip in this metric indicates more short positions in the market than long positions, which is bearish. In contrast, Ethereum’s long/short ratio saw a sharp increase, hinting at a potential price increase.
