Crypto investors have been eagerly awaiting the altcoin season. However, Bitcoin dominance has risen, indicating a delay in the expected capital flow into altcoins. Let's dissect the reasons behind this from a technical and fundamental perspective.
Technical Analysis of Altcoin Season Delay
When Bitcoin dominance is rising, altcoins generally underperform compared to BTC. For an altcoin season to begin, BTC dominance must decline. However, there is currently a lack of such signals.
Fundamental Analysis of Obstacles for Altcoin Season
The approval of Bitcoin ETFs in 2024 has attracted large institutional funds to BTC. Regulatory pressure also plays a role, especially in the US, where the SEC classifies many altcoins as securities, creating legal challenges.
When Will the Altcoin Season Start?
For the altcoin season to begin, Bitcoin must peak and consolidate, its dominance must decrease, and new speculative trends like DeFi or NFTs may be required to revitalize interest in altcoins.
The market is currently Bitcoin-dominated. Only after BTC reaches its peak and consolidates, we can expect increased interest in altcoins.
