Altseason Indicators Not Yet Aligned for Altcoin Surge

Crypto analysts highlight that current indicators, including Bitcoin dominance, do not yet support an altseason surge.

The alignment of altseason indicators is crucial for significant altcoin movements. Current metrics highlight a need for lower Bitcoin dominance before significant shifts occur.

Bitcoin Dominance Above 50% Stalls Altcoin Growth

Current indicators suggest Bitcoin dominance remains above 50%, hindering the onset of altseason. Besides, capital is largely accumulating in Bitcoin and Ethereum, as per analysts.

Analyst Cas Abbé noted the current situation is consistent with past trends where a decline in Bitcoin dominance preceded altseasons, impacting large-cap altcoins first.

Market Confidence in BTC Influences Altcoin Stability

The persistence of Bitcoin as a dominant asset suggests market confidence in BTC continues, influencing altcoin stability. Ethereum and large caps see early inflows, though broader rallies are missing. As Cas Abbé, Crypto Analyst, aptly mentioned, “The delay in the current altseason is primarily attributed to Bitcoin dominance remaining above 50%, which historically suppresses broad altcoin rallies. A decisive drop in Bitcoin dominance below 50% typically triggers an altseason, as capital rotates into altcoins.”

Financial markets and altcoin assets are reacting cautiously, with traders eyeing signals for a decisive capital shift into altcoins for potential price surges.

Past Altseasons Linked to Drops in Bitcoin Dominance

Historically, peaks in altseasons followed Bitcoin dominance drops, marking rallies in DeFi and Layer 1/2 tokens. Current patterns are being compared to these trends.

Experts suggest monitoring Federal Reserve actions which may trigger macro-economic shifts influencing crypto capital flow, potentially fueling an altseason. “Although the Federal Reserve decided not to cut interest rates at its May 7 meeting, futures markets now show roughly a 70% probability of a cut in June. Additional cuts later in 2025 could also trigger an alt season” – as shared by Tangem, Official Blog, may be a key factor.