The cryptocurrency market recently experienced a sharp correction that thwarted investors' hopes for a new start to what is known as 'Altcoin Season', while Bitcoin continues to maintain its leading position without being significantly affected by recent fluctuations.
According to an analysis published by the Santiment platform, discussions related to altcoins have notably declined across social media, coinciding with a drop in trading volume and market shares, returning to levels similar to those seen in April. This sentiment shift is striking, especially when compared to the strong momentum these discussions witnessed in February, May, and mid-July.
Quantitative indicators support this decline in sentiment. The 'CoinMarketCap Altcoin Season Index' has dropped from its peak of 55 points in July to 36 points currently. Other indicators, such as 'Blockchain Center' and 'Bitget', recorded similar readings at 39 and 36 points respectively, reflecting a broad consensus on the weakness of the alternative market.
In contrast, TradingView data shows that Bitcoin still dominates the landscape, holding a market dominance of over 60%, with its price stabilizing above $116,000, reinforcing its status as a relatively safe-haven asset in a volatile environment.
Analyst 'Chian' pointed out that the positive events seen in the market in July – from regulatory improvements, increasing momentum in the sector of tokenized real-world assets (RWA), to ETF inflows and Ethereum performance rising – were not enough to fuel a rally for altcoins. He believes that the absence of a new price peak for Bitcoin is what keeps risk appetite low in the market.
Despite this overall slowdown, there are partial signs of out-of-context activity. Santiment recorded a relative increase in discussions around Litecoin (LTC), Stellar (XLM), and USDC, reflecting a limited interest in certain assets.
Some technical analysts believe that a return of 'Altcoin Season' is still possible if Ethereum manages to break out of the current trading range and achieve a clear upward breakout. However, the consensus among experts tends to adopt a cautious stance until Bitcoin issues a strong and clear signal to reignite market momentum.
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