Altcoins struggle as Bitcoin hovers near $105,000 support amid escalating geopolitical tensions
Derivatives data reveals traders continue betting on Bitcoin, Ethereum, and XRP despite massive exchange liquidations
Altcoin prices fail to keep pace with institutional inflows despite improved market sentiment
The altcoin season—a period where 75% of top 50 altcoins outperform Bitcoin over 90 days—has been a hallmark of crypto market cycles. However, the current cycle differs radically with institutional capital flowing into Bitcoin, Ethereum, and sector-leading cryptocurrencies rather than speculative altcoins.
Why Altcoins Are Underperforming
The Altcoin Season Index (scale: 0-100) currently reads 14, indicating a dominant Bitcoin season where BTC outperforms top 50 altcoins. A reading above 75 defines an altcoin season—a threshold unmet since mid-May.
Institutional Focus Shift: Funds are pouring into Bitcoin, Ethereum, and XRP investment vehicles (ETFs, trusts) while altcoins face capital drought. Weekly digital asset flow reports highlight disproportionate inflows into these top-three cryptocurrencies.
Geopolitical Fallout and Market Dynamics
Bitcoin’s price volatility spiked after U.S.-Iran tensions triggered a drop to $90,000, though it recovered to $105,000 support. Key observations:
- $470M+ in market liquidations occurred recently.
- Open Interest (OI) rose for Bitcoin, Ethereum, and XRP derivatives, signaling trader confidence.
- Crypto Fear & Greed Index (65 = "Greed") reflects improved sentiment despite macro risks.
FAQ: Altcoin Season Myths Debunked
Q: Is this the end of altcoin seasons?
A: Not necessarily—but institutional adoption favors blue-chip cryptos, changing traditional cycle patterns.
Q: Should I sell my altcoins?
A: Diversify into projects with clear utility (e.g., Ethereum L2s, Ripple’s payment solutions) rather than meme coins.
Q: Why are BTC/ETH/XRP dominating?
A: Regulatory clarity, ETF approvals, and institutional trust make them safer bets during uncertainty.
👉 Discover institutional-grade crypto strategies to navigate this shifting market.
Bitcoin trades at $105,073 (-0.25% today) as of press time.
Disclaimer: This content represents the author’s views only. Consult a financial advisor before making investment decisions. CFDs are leveraged products with high risk.