The cryptocurrency market faces renewed uncertainty as Bitcoin’s recent downturn triggers significant altcoin losses and questions about the continuation of altcoin season. Major altcoins including Solana (SOL), XRP, and Dogecoin (DOGE) have suffered substantial declines, with SOL dropping 9.45%, XRP falling 5.48%, and DOGE plunging 10.80% over the past week.
Market indicators reveal a broad altcoin retreat, with the OTHERS index – tracking altcoins outside the top 10 by market capitalization – tumbling 18.7% in the last ten days. This rapid derisking signals collapsing momentum across the altcoin sector.
The CoinMarketCap Altcoin Season Index has notably declined from 55 to 40, reflecting a market shift toward Bitcoin dominance amid fading altcoin strength. The downturn coincides with Bitcoin’s price sinking below $113,000 due to whale sell-offs and increased volatility.
Despite the bearish sentiment, some analysts suggest altcoins may be positioning for a potential rebound. Crypto strategist Merlijn The Trader indicates these assets could be consolidating before a violent breakout phase, leaving room for possible future rallies despite current market conditions.