The interest in altcoins has been growing among cryptocurrency investors, suggesting that the so-called altcoin season – known in the market as altseason – is accelerating. According to the Altcoin Season Index, an indicator from the Blockchain Center platform that measures Bitcoin's performance relative to the 50 largest cryptocurrencies (excluding stablecoins), the index reached 80%, above the 75% recorded at the beginning of September.
This result indicates that, in the last three months, most altcoins have shown performance superior to Bitcoin, pointing to a possible shift in focus and capital from investors towards alternative coins. Altseason is usually awaited with anticipation by traders, as it historically creates opportunities for more significant gains than those obtained with BTC.
According to analysts, the rotation from Bitcoin to other cryptocurrencies is expected to accelerate due to the growth of corporate bonds, lower capital costs, and favorable regulatory winds.
Shane Molidor, founder of the cryptocurrency investment bank Forgd, stated to DLNews that the cyclical nature of Bitcoin and altcoin markets should lead investors to gradually rebalance, directing capital towards altcoins.
Decline of Bitcoin dominance
According to Decrypt, Bitcoin's dominance has fallen to 57.79% as traders migrated to altcoins like XRP, BNB, and Solana, fueled by significant gains in the last month. Solana rose by 35%, while BNB reached new all-time highs above $1,000, indicating that altcoins are outperforming Bitcoin in the short term and reinforcing signs of a possible altseason.
Despite the relative decline of BTC, analysts highlight that the institutional market continues to bet on the leading cryptocurrency, with over $2 billion in ETFs recently acquired.
Experts project that Bitcoin could still reach $140,000 to $145,000 by the end of the year, showing that the strength of altcoins does not diminish the relevance of BTC in the long term.
Ethereum Cycle
And you can't talk about altcoins without mentioning the main one, Ethereum. According to an analysis by CryptoQuant last week, ETH may be experiencing its strongest cycle yet, driven by institutional accumulation of corporate treasuries and spot ETFs, as well as the growing interest in staking.
Analysts highlight that large investors are treating Ethereum as a long-term strategic asset, similar to what happened with Bitcoin after the approval of ETFs, strengthening both the price and the perceived legitimacy of the currency. Despite some whales taking profits, many opted to buy more ETH, signaling continued confidence in the asset.
