Altcoins slide further into the decrease while investors come to Bitcoin amid escalating geopolitical tensions and a risk-off environment.
Data from Coinglass show that the Altcoin Season Index has been deposited to 12, the weakest level in almost a year, which reflects an in-depth lack of interest in non-bitcoin-Cryptocurrencies.
The Altcoin Season Index follows how non-bitcoin assets perform compared to Bitcoin. A low score suggests that Altcoins are left considerably, due to a broader movement to safety in uncertain markets.
The trend has been intensified in the past month because the tensions between Israel and Iran and fears for escalation involving the United States have pushed investors to more resilient assets such as Bitcoin.
Bitcoin -Dathinance rises
Given this, Shawn Young said, chief analyst at Mexc Research, told CryptoSlate That the prospects for a traditional Altcoin season remain unclear.
According to him, earlier cycles have often seen Altcoin’s momentum in the last phases of a bull run, but current market conditions suggest a different path. Institutional players now set the tone and their preference for Bitcoin, seen as both a hedge and a liquidity anchor, continues to suppress the Altcoin -Rebound.
He added:
“As long as volatility is increased and the macro risk lingers, capital rotation in Altcoins can be limited.”
This shift became clear during the weekend, when Ethereum fell to $ 2,130, the lowest since May, while Solana, XRP and other prominent Altcoins saw drops of more than 7%. ETH was found to $ 2260 from the moment of press.
Although Bitcoin fell shortly below $ 100,000, it quickly recovered to $ 101,000. As a result, the dominance compared to the total crypto market has risen after 65%, the highest since the beginning of 2021.
Another altiation season
In the meantime, Young pointed out that there is still potential for a new type of altealth season focused on strong Layer-1 networks such as Ethereum, Solana and XRP.
According to him, these platforms support vital infrastructure, such as Real-World assets-tokenization, Depin protocols and Stablecoin issue, those areas that get a grip from institutional investors.
He noted that interest in this high-upside altcoins could return if Bitcoin stabilizes above $ 100,000 and macro risks ease. Moreover, launching spot ETFs for these L1s can also serve as a future catalyst who could renew the interest in digital assets.