Bitcoin Dominance drives altcoins’ struggles – Bear market or buying opportunity?

Altcoin Season Index – What the numbers show

Source: Alphractal

The Altcoin Season Index (ASI) has plunged to levels that historically indicate Bitcoin’s dominance over the broader crypto market. With only 11 out of 57 tracked altcoins outperforming Bitcoin over the last 60 days, the index has decisively shifted into “Bitcoin Season.”

At press time, the chart demonstrated the steep drop in altcoin performances, contrasting with Bitcoin’s sustained hike.

Such a divergence hints at a short-term bearish outlook for altcoins. Worth noting, however, that previous ASI dips have preceded strong altcoin recoveries, raising the possibility of future opportunities.

Historical patterns and insights

Source: Alphractal

Out of 57 altcoins, only 11 have outperformed Bitcoin in the last 60 days, with XRP leading the pack with 117.3% returns, followed by AAVE at 82.0%. However, a majority of the altcoins have lagged, with coins like ETH and PEPE suffering notable declines.

Historically, such stark underperformance has often preceded altcoin rebounds, as market rotations shift capital back into alternative assets. Notably, large-cap altcoins like XRP and AAVE tend to act as leaders, signaling early signs of recovery.

Rising public interest in altcoins amid market shifts

Source: Alphractal

Pageviews for coins like XRP, Ethereum, and Dogecoin have spiked significantly too, correlating with periods of heightened volatility in the crypto market. While Bitcoin continues to dominate public attention, altcoins are carving out notable interest as well.

This trend is critical, as greater pageviews often signal early stages of retail engagement – A precursor to potential market inflows. Notably, spikes in curiosity tend to align with speculative phases, suggesting that altcoins might regain traction in the next growth cycle. This reinforces the narrative that despite their ongoing underperformance, altcoins remain on investors’ radar.

Read Bitcoin’s [BTC] Price Prediction 2025–2026

Bitcoin dominance and impact on altcoins – What’s next?

Bitcoin’s rising dominance – exceeding 50% – has tightened liquidity for altcoins, spotlighting their underperformance. Historically, such phases signal a consolidation period for altcoins, one where capital gravitates towards Bitcoin as a safe-haven asset.

This dynamic often precedes an altcoin recovery cycle as investors eventually rotate profits back into smaller assets. However, sustained Bitcoin dominance could stifle short-term altcoin growth, prolonging bearish sentiment.

Going forward, altcoin recovery will hinge on Bitcoin stabilizing, improved macro conditions, and renewed speculative interest. While risks remain, historical patterns suggest altcoins could rebound strongly once Bitcoin’s dominance begins to plateau.