Altcoin season index stuck in neutral – When is the next alt rally?

• Altcoin season index has remained impartial since December 2024. 
• A surge in BTC dominance again to 58% has capped the altcoin momentum. 

The much-awaited altcoin season 2025 has remained elusive. A key indicator for the altcoin momentum, the altcoin season index, has been impartial, suggesting it was neither an altcoin nor a Bitcoin [BTC] season. 

Supply: BlockChain Center 

Since late December 2024, the index has fluctuated close to 50, exposing most altcoins to vary or dumping.  Nevertheless, choose cash like Solana [SOL] have recorded modest good points over the identical interval. 

So, when can the sector report one other sturdy traction, like in November? Let’s discover BTC dominance and USDT dominance for clues. 

BTC dominance surge to 58%

Traditionally, the altcoin momentum rallies at any time when BTC dominance (BTC.D) drops and capital rotates to altcoins.

The rotation can also be marked by a pointy drop in USDT dominance (USDT.D), which signifies elevated speculative curiosity in different dangerous bets within the altcoin sector. 

Supply: Altcoin season efficiency, TradingView

Within the November run-up, the altcoin sector (OTHERS, white) noticed sturdy upside traction as USDT.D and BTC.D dropped.

Nevertheless, BTC.D jumped from 55% to over 58% since late December, indicating that almost all buyers parked cash on BTC relatively than altcoins. 

Moreover, USDT.D is caught within the 3.7%- 4.5% vary, forcing the altcoin sector into an analogous sideways construction. If BTC dominance drops, renewed altcoin traction may very well be believable.

Within the meantime, the market stays cautious and awaits the Trump administration’s pro-crypto coverage updates.  

It’s additionally value stating that subsequent week’s Fed charge choice will dictate the market route, therefore the broader altcoin sector may stay uneven till early February. 

That mentioned, crypto analyst TechDev, citing historic tendencies, projected that the altcoin market may develop strongly in 2025. He said,

“The altcoin market has seen a 10-month enlargement interval after each earlier indicators. Simply an statement.”

Supply: X