Bitcoin Dominance is Bleeding With Price, But Market Observers Say Altcoin Season is on Hold
Despite Bitcoin's falling dominance and price, analysts suggest the market is deleveraging, not entering an altcoin season yet.Summary
Bitcoin's recent sharp decline and drop in dominance, from 61.4% to 58.9%, typically suggests a rotation into altcoins, but analysts argue this is a market reset driven by excess leverage flushing out since October's liquidations. Major altcoins like Ether, ADA, DOGE, and Solana have seen deeper losses, indicating selective resilience rather than broad altcoin strength. According to Rohit Apte of Hex Trust, a sustainable rotation into altcoins requires major coins like BTC and ETH to first stabilize and consolidate. On-chain data supports this, showing active but not overheating ecosystems, with Base being a current hotspot, but lacking the widespread congestion and fee spikes characteristic of a true altcoin season. The market sentiment remains cautious, suggesting sideways movement until BTC and ETH find firmer footing.
(Source：CoinDesk)