Prospects for Altcoin Season Dim Amid Market Uncertainty

The article discusses the fading prospects of an altcoin season, a period when alternative cryptocurrencies (altcoins) outperform Bitcoin (BTC). Despite earlier predictions, recent market trends have not supported these expectations. The TOTAL2 chart, which measures the market cap of all cryptocurrencies excluding BTC, has shown a significant decline, indicating that an altcoin season is not imminent.
The TOTAL2 market cap was $960.23 billion at the time of writing, having increased by 25.63% over six months but dropped 15.08% in the last month and 4.13% in the past week. Analysts suggest that for an altcoin season to be validated, at least 75% of the top 50 altcoins need to outperform BTC, which has not been the case.
Some analysts, like Murad, believe meme coins such as Pepe (PEPE), Bonk (BONK), and Floki (FLOKI) might lead any surge in altcoins. Others, like Mister Crypto, see the current market downturn as a buying opportunity for altcoins.
Additionally, the ETH/BTC chart, which compares Ethereum’s (ETH) performance against BTC, has shown a recent decline. Historically, when ETH outperforms BTC, it benefits altcoins, but this has not been happening, further delaying a potential altcoin season.
The broader market might be awaiting the trading of spot Ethereum ETFs for confirmation of an altcoin season. If ETH mirrors BTC’s performance following its ETF approval, it could benefit altcoins; if not, an altcoin season might remain distant.