Just like before, Bitcoin’s resilience is shining through – this time as the geopolitical powder keg between Israel and Iran threatens to explode. Growing jitters about a wider war, including the US, are driving investors towards the safety of Bitcoin. At the same time, Ethereum, Solana, XRP, and most of the other major altcoins are deep in the red. The net probability of an “Altcoin Season” has dropped down to a 12-month low as Bitcoin continues to gain dominance.
Altcoins Suffer Amid Bitcoin's Strength
The price of ethereum, the second-largest cryptocurrency, dropped to as low as $2,130 — it’s lowest level since May. Solana, XRP, and many other altcoins followed suit with these leading cryptocurrencies, with losses over 7%, in some cases much higher. This decline mirrors a larger pattern of capital exiting altcoins and moving into Bitcoin.
The ongoing shift is affecting the odds of an “Altcoin Season,” a time during which altcoins outperform Bitcoin as a whole. A recent piece by Oluwapelumi Adejumo over at CryptoSlate exposes that fascinating tidbit. It’s because at this time of year, the probability of having a season like that is at its annual minimum.
Expert Analysis on Altcoin Outlook
Shawn Young, Chief Analyst at MEXC Research, presented his perspective on the evolving market landscape. During the interview, he touched on the possibility of a new, traditional altcoin season developing. His analysis points to a number of reasons that are holding altcoins back in today’s environment.
"As long as volatility remains increased and macro risk lingers, capital rotation into altcoins may remain limited." - Shawn Young
Young pointed to four major areas drawing institutional attention. These are specifically real-world asset tokenization, decentralized physical infrastructure networks (DePIN), and stablecoin issuance. These platforms are considered to be the key infrastructure pieces in the crypto ecosystem. Speculation in high-upside altcoins will likely resurface once Bitcoin shows stability above the $100,000 mark.
Factors Influencing Market Trends
Whether geopolitical tensions continue to fuel market uncertainty remains to be seen. For one, investors are rushing to Bitcoin as a safe haven asset. On top of this, macroeconomic risks are adding to the overall trepidation we’re seeing around altcoins.
Reducing these broad-stroke risks may help rekindle bullish sentiment, opening the floodgates to high-upside altcoins. Until then, while uncertainty continues to loom, Bitcoin is bound to thrive and keep its dominance.
