Current situation in the crypto market
The cryptocurrency market remains unstable. Its dynamics are influenced by several factors: from the geopolitical situation to the unexpected support for meme coins from influential world leaders.
Despite a significant decline in Bitcoin after the last historical high, altcoins suffered the greatest losses. This naturally led to the main question of the crypto community: when will the 'alt season' begin - a period of active growth for alternative cryptocurrencies?
Signs of an approaching 'alt season'
The market is already showing several signals indicating a possible imminent arrival of this period:
🔹 Bitcoin dominance. In recent months, it has strengthened, which usually precedes a redistribution of liquidity in favor of altcoins.
🔹 Easing regulation. The U.S. is increasingly hinting at possible easing of restrictions in the crypto industry, which could attract investments in Ethereum and other major altcoins.
🔹 Growing institutional interest in altcoins. Recent support for XRP, Solana, and Cardano from a former U.S. president indicates that some digital assets are beginning to receive recognition at the highest level. This could attract institutional investors and redistribute market liquidity.
Why is all the attention on Bitcoin for now?
At this stage, Bitcoin remains the main point of attraction for investors. In previous market cycles, altcoins grew due to technological breakthroughs such as Layer 2 solutions, DeFi, and GameFi. However, no significant innovations have been observed in this cycle so far.
In addition, the media hype around Bitcoin, new historical highs, and the growth of institutional capital strengthen its dominant position.
However, this does not mean that altcoins will remain in the shadows. The anticipated approval of cryptocurrency exchange-traded funds (ETFs), the growing interest from major players, and possible regulatory relaxations could radically change the situation.
How not to miss the start of 'alt season'?
There are several key indicators that will help notice a trend change in time:
✅ Decrease in Bitcoin's share of the total market capitalization. If this indicator begins to decline steadily, it may indicate a growing interest in altcoins.
(This is a chart from CryptoQuant showing the cyclical signals of the PnL Index for Bitcoin.
Historically, these signals have reflected market cycles well. An orange signal has appeared again, which may indicate an approaching peak.)
✅ Altseason Index from Blockchain Center. A value above 75 usually means that most leading altcoins are outperforming Bitcoin in growth rates.
✅ Increased activity on social media. If the number of discussions about altcoins increases on Twitter, Reddit, and other platforms, this may indicate a growing interest in them.
✅ News about partnerships and new projects. Loud announcements and technological updates often become catalysts for altcoin growth.
At the moment, Ethereum continues to face competition, especially from Solana. However, the upcoming Ethereum Pectra upgrade could be the trigger that launches a new phase of growth for alternative cryptocurrencies.
Conclusion
In conclusion, it is worth noting that it remains unclear whether a crypto winter will occur soon, but the market has already experienced several corrections caused by economic instability and changing sentiments.
Nevertheless, the current bull market remains unprecedented, and while pullbacks are inevitable, the cryptocurrency industry continues to demonstrate its resilience. Technological development, institutional recognition, and growing interest in digital assets form a solid foundation for further growth.
