The cryptocurrency market has witnessed a shift in dynamics, as the familiar trend of altcoins outperforming Bitcoin during ‘alt season’ starts to lose its reliability. According to a Yahoo Finance report, this correlation is weakening amidst the recent market downturn following Donald Trump’s re-election hype.
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Historically, altcoins such as Solana and Dogecoin have experienced price surges following Bitcoin’s rally. However, this cycle has demonstrated a different pattern, with both altcoins and Bitcoin moving in tandem. As per the IndexBox data, Bitcoin’s value has plummeted by approximately 28% since its peak in January, while more volatile tokens like Solana and Dogecoin have fallen by over 50% from their highs.
The volatility is further intensified by macroeconomic concerns, including new tariffs and inflationary pressures. Scandals, such as the Libra memecoin controversy and Bybit exchange hack, have exacerbated market apprehension. This environment mirrors patterns seen in past years, where market moves were synchronized with Bitcoin’s price trajectory. Despite the gloom, the SEC is anticipated to approve ETFs for several cryptocurrencies this year, potentially increasing accessibility and interest. However, as observed with past Ether ETFs, there’s a risk of demand not meeting expectations. Consequently, the concept of ‘alt season’ may be on the brink of becoming obsolete.
