Is the Alt season for cryptocurrencies over?

The dynamics of the cryptocurrency market have changed as AltCoins is familiar with trends that outperform Bitcoin during the “ALT season” and begins to lose its reliability. This correlation is weakening in the recent market decline following Donald Trump’s re-election hype, according to Yahoo Financial Report.

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Historically, Altcoins such as Solana and Dogecoin have experienced price surges after the Bitcoin rally. However, this cycle exhibits different patterns, while altcoins and Bitcoin move simultaneously. According to Indexbox data, Bitcoin’s value has been around 28% since its peak in January, while volatile tokens like Solana and Dogecoin have been reduced by more than 50%.

Macroeconomic issues, including new tariffs and inflationary pressures, have further exacerbated volatility. Scandals, such as the Libra memorial controversy and Bybit Exchange Hack, have exacerbated market worries. This environment reflects the pattern seen in the past few years, where market movements synchronize with Bitcoin’s price trajectory. Despite the frustration, the SEC is expected to approve cryptocurrencies several times this year, which may increase accessibility and interest. However, as observed in the past Ether ETFs, the risk of demand is not satisfactory. Therefore, the concept of “ALT season” may be outdated.

Source: Index Box Market Intelligence Platform