The crypto market is eagerly awaiting the altcoin season, but current indicators suggest that it is not imminent.
Funds Move to Stablecoins
Crypto analyst Ali Martinez recently noted a shift in capital movement; instead of flowing from Bitcoin and Ethereum to altcoins, funds are being directed towards stablecoins. This trend reflects investor caution, as they avoid riskier bets on altcoins due to market uncertainty. Consequently, altcoins are struggling to gain momentum.
Ethereum's Downward Slide
Historically, Ethereum has been the trigger for altcoin seasons. However, Ethereum is currently underperforming. Crypto trader Picolas Cage pointed out that without Ethereum's rebound, altcoins cannot recover. In past bull markets, ETH drove trends like ICOs, DeFi Summer, and the NFT boom. Without similar growth drivers today, altcoins are left struggling.
When Will Altseason Return?
Global events have also impacted the crypto market. A recent crash triggered by new tariffs from Donald Trump led to a massive sell-off. Altcoins suffered the most, with Bitcoin's market dominance needing to rise above 70% before an altseason can start. Although Bitcoin's dominance is increasing, it has not yet reached the required level.
Currently, the crypto market remains in a holding pattern. Altcoins are still searching for growth opportunities, awaiting the necessary rise in Bitcoin dominance and renewed interest in Ethereum.
