The Altcoin Season Index continues to demonstrate significant fluctuations, leading to renewed interest in Bitcoin amidst instability in the altcoin market.
Bitcoin's Dominance Returns
From May 25 to June 26, the Altcoin Index experienced severe volatility, indicating fast attitude shifts among traders towards Bitcoin and over 50 altcoins. Analyst Joao Wedson asked, 'Who's ready for an Altcoin Season?' However, the index remains below 25%, reinforcing Bitcoin's dominance in the market.
Hourly Chart Shows Instability
According to a report by Alphafractal, the 48-hour rolling window between May 25 and June 26 revealed one of the most aggressive intra-month rotations this year. On May 26, more than 50 altcoins outperformed Bitcoin, yet by May 31, dominance had dropped below 25%. This dynamic raises questions about when a true altcoin season may begin.
Performance Heatmap Reveals High-Beta Chasing
The performance heatmap shows that tokens like PEPE, DOGE, and RENDER posted repeated +20% surges during Bitcoin's low-volatility phases. However, few managed to sustain those gains past the 48-hour window, confirming cycles of speculative inflows and rapid trader exhaustion.
The increasing volatility in the altcoin market and the return of investors to Bitcoin highlight the complex market situation, where altcoins struggle to maintain their positions.
