Santiment: 'Altcoin Season' Dream Doused by Sharp Decline, Bitcoin Still Holds the Fort
With the recent pullback in the crypto market, the community's hopes for an 'altcoin carnival' have been thoroughly extinguished by the sharp drop, while Bitcoin (BTC) seems to be holding its ground.
According to data from Santiment's report, social discussion intensity around altcoins has sharply declined, with trading volume and market share dropping back to April levels, reflecting a clear shift in investor risk appetite. This phenomenon stands in stark contrast to the surge in social discussions seen in February, May, and mid-July this year, indicating a fundamental change in market sentiment.
This assessment is supported by multiple market indicators. CoinMarketCap's altcoin season index percentage has fallen from 55 in mid-July to the current 36, while similar metrics from Blockchain Center and Bitget stand at just 39 and 36, respectively; meanwhile, TradingView data shows that BTC's market share remains above 60%, with its price firmly above $116,000.
Analyst Chyan points out that despite a slew of positive news in July, such as favorable regulatory developments, momentum in RWA (real-world asset tokenization), Ethereum's recovery, and ETF inflows, the market's attention has not shifted to altcoins. As long as Bitcoin fails to set new highs to ignite market risk appetite, altcoins will remain in a dormant state.
However, the market has not completely fallen silent. Santiment has noted that recent discussion around assets like LTC, Stellar, and USDC has risen against the trend, with some technical analysts still adhering to the rhythms of past bull markets, believing that as long as Ethereum maintains its range-bound trading and eventually breaks upward, the altcoin season still has a chance to return.
Nevertheless, before Bitcoin provides a clear signal, analysts generally advise maintaining caution, holding back, and waiting for the next true catalyst that can drive the market forward.
