Altcoin crash: Bitcoin’s grip under threat?
Altcoin crash: Bitcoin’s grip under threat?
- Bitcoin’s reign still looks strong, but altcoins are looking seriously oversold – could a rebound be brewing?
- The Altcoin Seasonality Index has hit rock bottom, hinting that altcoins might just be ready for a comeback.
Since 2025 kicked off, Bitcoin [BTC] has been the undisputed star of the crypto show, pulling attention and funds away from altcoins, which have been stuck in a bit of a rut.
But hold on—a key indicator is suggesting this might be about to change. The Altcoin Seasonality Index has taken a nosedive to levels we haven’t seen in ages, practically screaming “oversold!”
Bitcoin dominance is still holding its ground, but is its upward momentum starting to fade? Could we finally be on the verge of that altcoin resurgence we’ve all been waiting for?
2025 so far: Bitcoin’s Year to Shine
Bitcoin dominance (BTC.D) has been on a steady climb since the start of 2025, really flexing its muscle in the crypto market. Starting the year around 57%, it’s been consistently rising, even topping 64% by early February.
This surge happened right alongside Bitcoin’s own price rally, naturally attracting liquidity away from altcoins and further solidifying Bitcoin’s grip on the market.
Source: TradingView
After hitting its peak, Bitcoin dominance then dialed back a bit, finding a support level around 60% and settling near 61.38% in March.
We’re at a real turning point here. If Bitcoin dominance sticks around these levels, altcoins could be in for more of a struggle. However, if it dips below 60%, that could signal a shift towards alts, and maybe even the start of that altseason everyone’s been hoping for.
The Plunge: What’s in store for Altcoins?
The Altcoin Seasonality Index has plummeted to just 18, hitting seriously low territory – levels not seen since Bitcoin started its dominance surge in early 2025. Remember back in December 2024? That’s when altcoin metrics were riding high, coinciding with a brief pullback in BTC.D.
But since then, it’s been all Bitcoin, soaking up market liquidity and holding altcoin performance down.
Source: X
Historically, these kinds of deep dips in the index have often been key turning points. They’ve signaled times when things are so oversold, they pave the way for a shift in where the money flows.
Even though Bitcoin is still calling the shots, this current slump in altcoin seasonality hints that we might be seeing the bottom. If the mood shifts and people get their risk appetite back, we could be setting up for a pretty significant rebound.
Altcoins: What’s Next?
With the Altcoin Seasonality Index now down at 18, traders are keenly watching for any signs of a turnaround. Looking back, previous drops to similar depths in early 2024 and mid-2023 were followed by some really solid altcoin recoveries.
However, for a real change of pace, we need to see Bitcoin dominance lose some steam and liquidity start flowing back into altcoins.
If altcoins start outperforming Bitcoin, even just a little, that could be our cue that a relief rally is starting.
Still, it’s wise to be cautiously optimistic. Let’s not forget that external factors and the ever-present regulatory developments – and there are plenty of those lately – can still throw a wrench in the market works.
Having said that, these oversold conditions definitely suggest that altcoins have the potential to bounce back and win back some of that lost ground soon.
