Bitcoin triumphantly formed a number of fresh record highs last week, and eventually just peaked at $ 124,000 when the profits emerged. The increase has paved the way for what many describe as the latest “ALTCOIN season”, which involves the crypto -tokens than Bitcoin, which often makes exponential movements to the head.
The recent Bitcoin Bull market has just been: a Bitcoin Bull market with Altcoins taking the back seat as institutions were together around Spot Bitcoin ETFs and BTC-based treasuries.
But there has been a change in behavior this week. Several altcoins have sent gains of between 50% and 80% when capital begins to flow from the world’s dominant crypto to more speculative efforts.
Ether had a good week on the back of a wave of institutional interest and increased by 23.3% compared to Bitcoin’s win of 9.3%. Other LAG-1 Blockchains such as SEI and SUI also priested well, which increased by 41% and 36% respectively.
Are we in an ALTCOIN season?
Altcoin seasons in previous bull markets have been a culmination of euphoria, speculative and viral movements often led by cryptoin flu and celebrities. This time it seems to be more accurate and surgical, altcoins tied to projects with a lot of activity like SUI is tokens moving.
The data also shows early signs of an altcoin season, Cryptoquants MRVR-based Altcoin season indicator has crossed into the Altcoin season for consecutive weeks for the first time since June 2024, indicating a shift in momentum.
MVRV shows the relative position of market value to BTC and ETH, under previous Bullish bikes the indicator was in an altcoin season for months at a time.
Furthermore, the Meme Coin -dominance diagram has been on a significant downturn since this year’s turn after beating Meme coins issued by US President Donald Trump and First Lady Melania Trump.
The shift away from Meme coins suggest that this period in the cycle can be categorized after tokens tied to projects with profits that rise as opposed to speculative high and euphoria.
Coindesk’s CD20 index has also surpassed the CD5 index, the latter of which just considers BTC, ETH, XRP, SOL and ADA, while CD20 includes several altcoins, which further demonstrates a transition to a bullish market for altcoins.
CoinMarketcaps ALTCOIN -season barometer has also crossed up to 36 out of 100, one level seen only once in the last 90 days.
What happens next
The ALTCOIN market is still highly dependent on BTC. If Bitcoin continues to consolidate above prior record highs of $ 112,000, Altcoins are due to a continued move to the head.
However, if Bitcoin continues its ascension in uncontrolled territories or if it breaks below $ 112.00, the Altcoin market will underprestate against BTC.
This is because Altcoins lack sufficient liquidity to handle larger price fluctuations, and if BTC continues to move to the head, capital will be assigned to chase this rally while Altcoins take a back seat.
