Crypto analysts are reporting that an altcoin season is unlikely due to Bitcoin’s increasing market dominance, which is currently leaving little room for altcoins. Here are the main insights:
Key Insights:
- The Supertrend indicator shows a ‘sell’ signal, which previously resulted in a 66% dip in the overall altcoin market cap.
- A rising Bitcoin (BTC) dominance alongside a low altcoin season index suggests that a reversal is not imminent.
Market Trends for Altcoins
The decline in the altcoin market can be seen in the TOTAL2 metric, which represents all cryptocurrencies except Bitcoin. Data shows that TOTAL2 fell by 32% since reaching an all-time high of $1.77 trillion on October 10, bringing it down to $1.19 trillion as of December.
This decline also coincided with losses across critical support levels, including the 50-week exponential moving average, currently positioned at $1.3 trillion.
According to the SuperTrend indicator, there has been a bearish signal since it switched from red to green, indicating negative market trends similar to those observed in previous bear markets.
Bitcoin’s Dominance in 2025
Bitcoin continues to tighten its hold on the market, which has hindered altcoins from gaining traction. After spiking above 65% in June, Bitcoin dominance fell to around 57% in September but has shown signs of recovery, with recent metrics indicating around 59.27% at the time of this report.
This increased dominance is attributed to institutional investments, particularly in Bitcoin ETFs, which have seen billions in inflows, reflecting a preference for Bitcoin over altcoins. Institutions like BlackRock and Fidelity are increasingly focusing on Bitcoin due to its perceived stability and regulatory clarity.
Remaining Outlook
Current indicators suggest that an altcoin season is glaringly absent, evidenced by the fact that only 21% of top altcoins have managed to outperform Bitcoin in the last three months, signaling a prevalent capitulation among altcoin investors.
Finally, data from CoinMarketCap shows the altcoin season index at a historic low of 18 out of 100, indicating a continued lean towards Bitcoin dominance in the current market.
