Bitcoin Dominance Persists Despite Growing Excitement Around Institutional Inflows

The altcoin market has not shown much of a revival despite growing excitement around institutional inflows by way of ETF approvals.

The cryptocurrency market has seen limited signs of an altcoin revival despite growing excitement around institutional inflows by way of ETF approvals.

According to CoinMarketCap’s Altcoin Season Index, the current score stands at 18/100, still placing the market firmly in “Bitcoin Season.” The index tracks whether the top 100 altcoins (excluding stablecoins and wrapped tokens) have collectively outperformed Bitcoin over the preceding 90 days.

A score above 75 is typically reached during “Altcoin Season,” a period characterized by significant capital rotation from Bitcoin into higher-beta altcoins as investors chase greater short-term returns. Such seasons usually feature parabolic altcoin price surges, amplified social media hype, and increased retail participation.

However, recent readings have remained consistently low. Yesterday’s score was 14, down four points from today, last week’s was 15, and last month’s was only marginally higher at 16. Based on the 90-day timeframe, the lowest was recorded at 13 on March 12. This indicates that we’re still in a Bitcoin-dominant phase, which experts predict will continue until the middle of 2025, a year after the 2024 Bitcoin halving.

At that point, we can expect to see a shift in momentum, with altcoins taking the lead in a potential bull run. Key indicators to watch for this shift include trading volume and market capitalization.

Rising altcoin trading volumes, compared to stablecoins and Bitcoin, would indicate the influx of new capital into the market. “Memecoins like Dogecoin and newer tokens like SUI have already shown significant growth, but for a true altseason, growth should be seen across all sectors”, noted SuperDuperCycle, a crypto influencer.

“While these don’t guarantee a record-breaking altseason, they have recently been stacking up. If Bitcoin stabilizes and doesn’t crash, altcoins are likely to start the next market wave.”

Still, there are some signs of divergence beginning to emerge, particularly in AI- and RWA-themed tokens, but not enough to favor the altcoins index. Until altcoins consistently outperform BTC across the top 100 list, the Altcoin Season Index is unlikely to flip bullish anytime soon.