Altcoin performance continues to lag behind Bitcoin, with the Altcoin Season Index showing a decline that signifies a return to Bitcoin's dominance in the market.
Bitcoin Regains Market Control
According to Alphractal, the current Altcoin Season Index reads just under 20%, reflecting a sharp retreat from the previous levels above 90% seen earlier this year. This drop indicates a reversal in market momentum.
2025 Funding Trends Show Divergence in Risk Appetite
A dramatic pullback in funding is also influencing sentiment across the crypto sector. Q2 2025 marks the lowest Web3 venture funding since 2019, contrasting sharply with the $3.8 billion raised in Q1.
Historical Cycles Indicate June as a Pivot Point
Interestingly, since 2022, every June has marked the beginning of an altcoin season. While the Altcoin Season Index remains low, signs of a shift towards alternative assets may be brewing.
The ongoing development in the crypto market suggests that Bitcoin's dominance, alongside the declining Altcoin Index, might lead to forthcoming changes in investment strategies among traders and investors.
