Bitcoin’s recent reign over the crypto market has jumped up to levels we haven’t witnessed since January 2021. All that dominance seems ready to crumble, setting the stage for a massive altcoin rally. Despite Bitcoin’s relative strength in recent months, there are multiple signs that momentum is turning. Increasing altcoin volume and capital is flowing into more general sectors. This is a sign that an altcoin season could soon be on the way, with outside observers pointing to May 2025 as a possible starting date for a massive altcoin rally.
Meanwhile, the ETH/BTC ratio has fallen back to its lowest point since 2020. This significant drop further signifies just how bad Ethereum has been doing compared to Bitcoin. This drastic drop in Bitcoin dominance is a bullish indicator contributing to the theory that an altcoin season may soon arrive.
Adding more fuel to this thesis are the powerful altcoin moves that started in early May. The CMC Altcoin Season Index is on the move up. This index tracks the performance of the 100 largest coins by market capitalization excluding stablecoins and asset-backed tokens. This index is extremely important to measure the probability of an altcoin season or not.
The CMC Altcoin Season Index operates on a scale where scores between 25 and 75 are considered neutral, while values exceeding 75 officially signal an "Altcoin Season." As such, this benchmark is a useful and easy metric that traders and investors can use to measure the market’s current mood. While Bitcoin’s 10% YTD performance is nothing to sneeze at, the combined factors point towards altcoins being primed for a strong recovery in the short term.
