Major Ethereum, Solana, XRP losses cause chance of Altcoin Season to drop to 12 month low amid Bitcoin strength

Altcoins are slipping further into decline as investors flock to Bitcoin amid escalating geopolitical tensions and a risk-off environment.

Data from CoinGlass shows the Altcoin Season Index has plunged to 12, its weakest level in nearly a year, reflecting a deepening lack of interest in non-Bitcoin cryptocurrencies.

The Altcoin Season Index tracks how non-Bitcoin assets perform relative to Bitcoin. A low score suggests that altcoins are underperforming significantly, reflecting a broader move toward safety in uncertain markets.

The trend has intensified over the past month, as tensions between Israel and Iran and fears of escalation involving the United States have pushed investors toward more resilient assets like Bitcoin.

Bitcoin dominance rises

Considering this, Shawn Young, Chief Analyst at MEXC Research, told CryptoSlate that the outlook for a traditional altcoin season remains unclear.

According to him, past cycles have often seen altcoins gain momentum in the latter stages of a bull run, but current market conditions suggest a different path. Institutional players are now setting the tone, and their preference for Bitcoin, seen as both a hedge and a liquidity anchor, continues to suppress the altcoin rebound.

He added:

“As long as volatility remains increased and macro risk lingers, capital rotation into altcoins may remain limited.”

This shift became evident over the weekend, when Ethereum fell to $2,130, its lowest since May, while Solana, XRP, and other prominent altcoins saw drops of over 7%. ETH has recovered to $2260 as of press time.

Although Bitcoin briefly dipped below $100,000, it quickly recovered to $101,000. As a result, its dominance over the total crypto market has surged past 65%, the highest since early 2021.

A different altseason

Meanwhile, Young pointed out that there is still potential for a new type of altseason centered on strong Layer-1 networks like Ethereum, Solana, and XRP.

According to him, these platforms underpin vital infrastructure such as real-world asset tokenization, DePIN protocols, and stablecoin issuance, which are areas that are gaining traction among institutional investors.

He noted that interest in these high-upside altcoins could return if Bitcoin stabilizes above $100,000 and macro risks ease. In addition, launching spot ETFs for these L1s may also serve as a future catalyst that could renew interest in the digital assets.

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