3 Reasons Why The Altcoin Season Is Still On

Analyzing the ALT/BTC pair revealed a gradual decline, with current levels at 0.38 after peaking near 1.0 in earlier years. Altcoins are still expected to rise despite the larger bearish narrative.

This prolonged downtrend indicated the pair’s struggle to maintain earlier highs, affirming a bearish outlook over the extended term.

However, analyst Benjamin Cowen, noted that the the Altseason was still on despite taking longer than normal for ALT/BTC pairs to go to the range lows for a bullish bounce.

The persistence of this pattern, despite deviations, suggests that the pair may still reach the historical lows. The movement aligned with broader market trends where altcoins depreciate against Bitcoin during bear phases.

Notably, each peak since 2018 has been progressively lower, signaling weakening strength in altcoins relative to Bitcoin.

If this trajectory continues, the ALT/BTC pair might retest lows around 0.20, levels last seen in the initial sharp declines of 2018.

Conversely, a reversal from current levels should consider resistance at 0.50 and 0.60, observed as interim peaks through 2021 and 2023.

Investors should monitor for any signs of divergence in this pattern, particularly if altcoins start to demonstrate independent strength or if market dynamics shift, perhaps due to broader adoption or significant blockchain innovations.

However, without such changes, the most likely scenario remains a continued test of lower bounds, reflecting ongoing dominance by Bitcoin in the cryptocurrency market.

Altcoin Dominance by Trading Volume

Additionally, altcoin dominance by trading volume surged back above 50% last week, indicating a renewed interest among investors in digital assets beyond Bitcoin.

This trend, as shown in the recent data from Coinalyze.net, suggested a significant rebound, with altcoin volume reaching $26.64 Billion as of late February 2025.

The increase suggested that traders were diversifying their portfolios, moving capital into a variety of altcoins, which could be a sign of growing confidence in their potential.

This shift could also reflect a broader risk appetite returning to the crypto markets, as investors look for higher returns outside the more established Bitcoin.

If this trend continues, altcoins could see further increase in volumes, possibly driving up prices as more investors get involved.

Conversely, a shift back to conservative strategies could see Bitcoin regain its lost ground, demonstrating the volatile nature of cryptocurrency investments.

Average Funding Rates of Altcoins

However, the latest data revealed a prevailing negative trend in the average funding rates of altcoins, highlighting a cautious or bearish sentiment among traders.

Analysis of the graph from February 2025 indicated a consistent dip below the zero line in funding rates, suggesting that short positions were more favorable among those expecting further declines.

This downward trend in funding rates could imply several potential outcomes for the altcoin markets.

First, the continued negative rates may lead to increased pressure on altcoin prices, possibly driving them lower as short sellers capitalize on falling prices.

On the other hand, there could be a sudden turn in market sentiment or external bullish news where the accumulation of short positions could lead to a short squeeze, causing a rapid price increase as traders rush to cover their positions.

As altcoins navigate volatility, keeping an eye on such financial derivatives will be crucial for predicting future trends and making informed trading decisions.