Altcoin Season Delayed? Bitcoin Dominance Holds Back the Rally

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Is Altcoin Season Here_ Traders Rotate to XRP, Solana, ADA as Bitcoin Loses Steam

The post Altcoin Season Delayed? Bitcoin Dominance Holds Back the Rally appeared first on Coinpedia Fintech News

The sentiment around Altcoin season odds has thinned more than ever, as markets are pulling back as geopolitical stress ramps up, and market participants on this are clearly uneasy. Several disastrous headlines sparked sharp reactions, especially across the altcoin sector.

While the top cryptos like Bitcoin and Ethereum are seeing increased sell pressure in the short-term, as capital looks for safety elsewhere.

As people panicking, most recently, an expert, Mister Crypto, addressed a relief statement on X that altseason has not been cancelled yet, but in fact, it has been delayed. He optimistically said that once it starts, people holding potential altcoins will get rich for sure. People have agreed with the experts’ post and added that the longer it coils, the more violent the breakout will be.

Bitcoin Is The Reason Altcoin season Could Be Delayed

Mister crypto said that global liquidity is exploding, and Bitcoin price seems to be following it.

Meanwhile, BTC continues to enjoy institutional interest and publicly traded companies having Bitcoin on their balance sheet has jumped 2.3x from 2024. As per the Blockware chart, the number has jumped more than 150. Alongside this the success of spot Bitcoin ETFs and retail interest, keeps capital concentrated in BTC, preventing it from broadly rotating into altcoins. As a reason why, the “Altcoin Season Index” has been low, indicating a “Bitcoin Season.”

Also, FOMC’s steady stance as it kept rates unchanged limits the flow to much riskier altcoins, contributing to this delay.

Similarly, MAX crypto, seeing the M2 money supply chart rising, predicted that $150K could come under improved geopolitical conditions, which would definitely raise its dominance further.

Likewise, the passage of the GENIUS stablecoin act from the Senate is indeed broadly bullish for the entire crypto market, but favours BTC more. As this act is increasing confidence and going to facilitate newer institutional entry by legitimizing stablecoins.

This makes institutional capital and confidence flow first into Bitcoin because it is the most established and liquid crypto asset. 

Moreover, this concentration of new money in BTC, aligned with the several other factors mentioned, can contribute to Bitcoin’s continued dominance, thus delaying the broad capital rotation needed to fuel a widespread altcoin season.

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