Altcoin Season: Are We There Yet?

Crypto traders have been waiting for a full blown altcoin season this year but the overall altcoin market continues to underperform.

Moreover, recent developments may point towards more days of underperformance ahead. Altcoin season might face further delay according to recent exchange flow data.

More than 53,000 addresses reportedly sent altcoins to exchanges in the last 7 days.

This spike in addresses sending altcoins to exchanges was the highest observed since January 2025. This observation was not a fluke but rather the result of the shifting market sentiment.

Every time market sentiment drops from extremely bullish to extreme fear, investors tend to shift preference from altcoins to Bitcoin. This may explain the recent surge in Bitcoin dominance this month.

Bitcoin dominance has been ticking higher since mid-September and an ascending trend underpinned its lower range.

Is Altcoin Season Cancelled as Bitcoin Dominance Reflects Exchange Flows?

That is one of the biggest question that altcoin investors have as recent market outcomes signal dwindling confidence.

Furthermore, the altcoin season index confirmed that liquidity has been flowing in favor of Bitcoin than altcoins.

The altcoin season index aligned with the declining altcoin marketcap in favor of Bitcoin season. The last time a similar move was observed was in July.

The shift from altcoins in favor of Bitcoin dominance may suggest that the next wave of recovery might support an aggressive BTC recovery.

While this outcome may signal more delays for altcoin season, it also possible that altcoin season may make a strong comeback.

One of the reasons for this potential outcome was the fact that institutions have recently been demonstrating more interest in ETH than Bitcoin.

Meanwhile, Bitcoin price has already been showing signs of recovery during the weekend. It was back above $108,000 at press time after bouncing back by over 4% from its recent local low on Friday.

What’s even more impressive was that Bitcoin exchange reserves demonstrated weak exchange inflows despite last week’s sharp pullback.

This made it clear that long term holders were not heavily involved in last week’s Bitcoin price retracement.

A sign that they still anticipated prices to go higher before the end of the current market cycle.

Analyst Says Bitcoin Will likely Hang Around $107,000 a While Longer

Although Bitcoin price has been recovering this weekend, some analysts believe that it will likely remain near the $107,000 price for a while.

His justification was based on the CME magnet trading indicator.

The X-based analyst by the name Daan Crypto noted that the CME magnet was the reason why Bitcoin was able to bounce back aggressively.

This expectation that price will likely remain attracted to the 107,000 price level bight be backed by weak whale demand observed during the weekend.

Aggressive demand from whales often underpins robust bullish recoveries. However, the weekend data revealed that whales were still on the sidelines.

This weak recovery may prevail if institutional flows this week adopt a similar outcome. Analysts remained on the lookout for signs that may shift demand and supply dynamics this week.

Rate cut possibilities are among the top narratives for the remainder of October courtesy of the FED’s upcoming meeting.