Altcoins no longer outperform Bitcoin as market sentiment shifts, raising doubts about the return of traditional ‘alt season’ rallies.
Alt Season Fails to Materialize
In past cycles, altcoins surged after Bitcoin peaked, but this pattern appears to be fading. Instead, smaller tokens like Solana and Dogecoin are now moving in sync with Bitcoin, which still dominates 60% of the $2.7 trillion crypto market.
Jeff Dorman, CIO of Arca, stated:
“Alt season happened once or twice in the past, but that doesn’t mean that it will continue to be an event.”
Crypto Selloff Hits Altcoins Hard
Bitcoin has dropped 28% since January’s peak, while Solana and Dogecoin have lost over 50% from their highs. Even Trump’s recent “Crypto Strategic Reserve” announcement, which briefly pumped XRP, SOL, and ADA, failed to sustain gains.
Economic Factors Weigh on Crypto
- New tariffs and inflation concerns are fueling uncertainty.
- Bybit’s $1.5B hack and the Libra memecoin scandal add to market jitters.
- Bitcoin ETFs saw record outflows of $3.3B last month, reducing momentum.
ETF Expansion May Not Revive Alt Season
The SEC is expected to approve more crypto ETFs this year, but analysts warn demand may fall short—just as Ether ETFs failed to generate lasting hype.
With altcoins increasingly mirroring Bitcoin’s movements, some experts believe alt season may be gone for good.
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