Key Insights:
- Altcoin season hints increase as ETH dominance jumps from 7.3% to 12%.
- Bitcoin drifting near $87,000 may help rotation instead of blocking it.
- Liquidity returning after QT could spark the first leg for major alts.
Altcoin season means coins other than Bitcoin move faster and give better returns. Some traders think it is too soon to talk about this. Others say the signs are starting slowly, even if prices are not running yet. The feeling in the market is mixed. It is not fear. It is not excitement. It is something in between, like the moment before a race begins.
Bitcoin is near $87,000. Many altcoins have already stopped making new lows. This difference is not normal. It does not promise a rally, but it makes people pay attention. Especially with 2026 just a few hours ahead.
Bitcoin Slowing Down Is Giving Altcoins Some Room
Bitcoin does not need to crash for altcoins to improve. Sometimes it only needs to calm down. This happened before in 2017 and 2020, when BTC moved sideways, and strong altcoins started growing little by little.
The Altcoin Season Index shows many coins acting better than Bitcoin, even on days when the whole market is red.
We saw the same thing in 2019 and 2022, just before prices picked up. It usually starts quietly like this. Not with green candles, but with strength on bad days.
Another factor is that the proposed alt season might not even entirely depend on Ethereum, the OG altcoin, for that matter. Altcoins can start running independently of the bigger players. The dominance chart highlights that better.
Bitcoin dominance dropped from 64.3% in May to 59% now. Ethereum dominance grew from 7.3% to almost 12%. These numbers matter. When Ethereum gains ground, it often means money is testing other coins, too. ETH becomes the bridge. It happened before every major altcoin cycle.
Yet, the ‘other coin dominance’ metric hasn’t risen yet. That is what traders must track. A growing “other” dominance metric can be a direct sign.
If Bitcoin stays between $80,000–$90,000, altcoins can continue building support. If Bitcoin falls too fast, fear can return. If Bitcoin rises too fast, attention returns to it again. So a calm Bitcoin is strange, but helpful.
Why Are People Watching Macro as an Alt Season Trigger?
For a big move, new money must enter the market. This is why many analysts are watching the United States Federal Reserve.
The Fed could be preparing to stop QT (quantitative tightening). QT is when the Fed removes money from the financial system. When QT stops, it means more money stays in the system.
In 2020, QT ended ,and altcoins moved more than 1,000% because fresh money came back. Traders remember this. They are not saying the same thing will happen, but the environment feels similar.
Today, liquidation wicks are common. These are fast drops and fast recoveries on the chart that force traders to close positions. It looks scary, but many coins are holding their support levels instead of breaking down.
In older cycles, this happened right before prices moved higher.
People keep saying the market is cleaning itself. Weak hands leave. Strong hands stay. It is not a guarantee. It is just something that many traders notice.
Altcoin Rotation Is Not Equal for All Coins
If rotation happens, it will not happen to every coin at the same time. Majors like ETH, SOL, or TON may move first. If they hold steady, mid-caps follow later. Small caps usually move last, when confidence returns.
Some analysts think altcoin dominance could reach 25% in 2026. That would be the strongest shift since 2017. It is too early to say, but these are the numbers being discussed.
Macro investor Raoul Pal warns traders to stay calm. He says beginners often buy too late in altcoin season because emotions run high.
His advice is simple: Keep only 5%–10% in risky coins and let Bitcoin, Ethereum, or stronger majors hold the base of the portfolio. This advice is not perfect for everyone, but it helps many people avoid panic.
Right now, the early signs of an altcoin season are approaching. Some pieces match. Others do not yet. Bitcoin slowing down might be the missing piece that makes the picture clearer. No one knows if this will turn into a true altcoin season. But the market is acting like it could, not like it is impossible.