The cryptocurrency market in May is witnessing a transitional phase between "Bitcoin season" and "altcoin season," with mixed indicators suggesting a potential shift in market dominance and a slight decline in acquisition.
🔍 Market Indicators: Are we on the verge of altcoin season?
Bitcoin Dominance (BTC Dominance): Bitcoin dominance peaked at around 65% in early May, its highest level in over four years, raising speculation about the possibility of altcoin season beginning, especially as the acquisition index has begun to decline, which may indicate a shift towards alternative currencies.
Altcoin Season Index: The index recorded 24 on May 6, indicating the continuation of "Bitcoin season." However, the index rose to 35 by May 9, indicating an improvement in the performance of alternative currencies compared to Bitcoin.
📈 Altcoin performance: Signs of recovery
Many alternative currencies have risen significantly in the last two days, with many exceeding 20%. These increases, along with the decline in Bitcoin dominance, indicate the possibility of the beginning of altcoin season.
🧠 Expert Opinions: Has altcoin season started?
Raoul Pal: He believes that Bitcoin dominance has peaked, indicating the beginning of what he calls the "Banana Zone," a stage of sharp increases in the prices of alternative currencies.
Scott Melker: He warns that this cycle is different, as liquidity flows directly into Bitcoin, and not through periodic trading between it and alternative currencies.
⚠️ Factors to watch
Liquidity movements: In previous cycles, profits from Bitcoin were reinvested in alternative currencies. In 2025, data indicates that new investments are heading directly into Bitcoin, which may delay the start of altcoin season.
Technical indicators: Some technical indicators suggest that Bitcoin may be in an "overbought" zone, which could lead to a price correction and a shift in dominance towards alternative currencies.
✅ Conclusion
While Bitcoin dominance remains high, technical indicators and the performance of some alternative currencies suggest the possibility of altcoin season beginning in the near future. Investors are advised to monitor dominance indicators, the performance of alternative currencies, and liquidity movements to make informed decisions.
💥 But from my perspective, I believe that altcoin season may be delayed for several reasons, including the following:
🔥 First: Investment funds, hedge funds, and whales only invest in Bitcoin and do not trust alternative currencies for substantial reasons.
🔥 Second: The abundance of alternative currencies makes liquidity disperse and distribute among all currencies, making it difficult to achieve what is called altcoin season.
🔥 Third: America is talking about making Bitcoin a strategic reserve and not talking about other currencies.
🌹 Good luck to everyone 🌹
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