Altcoins are showing small gains, but Bitcoin dominance at 59–61% means a full AltSeason has not started yet.
Stablecoin supply is shrinking, and recent $315 million liquidations made traders more cautious.
A real AltSeason needs falling Bitcoin dominance and fresh liquidity entering the crypto market.
The crypto market is showing mixed signals about a possible new altseason. Bitcoin recently moved back near $88,000, providing some stability after weeks of sharp price swings. This recovery reduced panic selling but also kept most attention on Bitcoin instead of smaller coins. When Bitcoin stays strong, money usually flows into it first before spreading into altcoins.
Ethereum is trading between $2,900 and $3,000 at press time, while other major altcoins like Solana and Cardano are seeing only small gains amid frequent pullbacks. Some mid-sized tokens performed better than others, but most low-cap coins are still quiet. The market appears selective instead of broad, with only a few projects attracting investors.
One of the most important signs for altseason is Bitcoin dominance. At present, this metric is near 59–61% of the total crypto market value. This is much higher than levels seen during previous altseasons. High dominance shows that most money is staying in Bitcoin rather than moving into altcoins.
Institutional investors are still focusing mainly on Bitcoin, as it is seen as safer than smaller tokens. This makes it harder for altcoins to start a full rally. For a real altseason, dominance usually needs to fall steadily while altcoins gain market share over several weeks.
Also Read: Bitcoin & Ethereum Dip: Are Crypto Bulls Losing Control?
Stablecoin supply is another key factor for altcoin growth. Recent data shows a small contraction in stablecoin supply during late January. This means there is less fresh money ready to move into altcoins. Without strong, stablecoin inflows, rallies can be short-lived and limited to only a few tokens.
At the same time, derivatives trading remains high, and many traders are using leverage. This increases risk in the market. Profit-taking after the strong late-2025 rally has also slowed down momentum.
On January 25, Bitcoin dropped sharply and caused about $315 million in forced liquidations within hours. This event showed how fragile the market still is. When large liquidations happen, traders become cautious and avoid risky assets like small-cap altcoins.
Such events usually delay the growth of the best altcoins. Confidence needs time to rebuild before money flows back into higher-risk coins. After this liquidation wave, many altcoins lost short-term momentum and entered sideways movement.
Even with these challenges, some factors could still improve price action for the best altcoins to buy. New network upgrades, protocol launches, and exchange listings are generating interest in specific sectors like AI-linked tokens, Ethereum infrastructure projects, and interoperability platforms. These themes attract traders looking for higher returns.
Market observers say three main conditions are needed for a true altseason. Bitcoin dominance must start falling clearly. Stablecoin inflows should rise again. Derivatives markets should favor spot buying instead of heavy leverage. If these three align, altcoins could see stronger and more connected growth.
History shows that altseason usually follows a pattern. BTC moves first, then large-cap altcoins like Ethereum and BNB take the lead, and later mid and small-cap tokens rise fast. Right now, only the first stage looks active. A real signal would be when the Altcoin Season Index stays above 50 out of 100 for several weeks, and Bitcoin dominance drops.
Random spikes in small tokens do not mean altseason has started. Analysts warn that sustainable rotation is more important than short-term pumps.
Also Read: Solana’s $50 Warning: Is the Crypto Crash Coming?
Altcoins are rising in some parts of the market, but a full altseason has not started yet. Bitcoin near $87,000–$88,000 and Ethereum around $2,900 show strength, but high Bitcoin dominance, a lower stablecoin supply, and the recent $315 million in liquidations mean traders should be cautious.
If stablecoin supply increases and Bitcoin's dominance falls, a wider altcoin rally could follow. Until then, altcoin gains will remain limited and uneven. Altseason is possible, but it still needs stronger signs before it begins.
1. What is AltSeason?
AltSeason is a period when most altcoins outperform Bitcoin and show strong price growth together.
2. Are altcoins rising right now?
Some altcoins are rising, but gains are selective and not across the whole market yet.
3. Why is Bitcoin dominance important?
High Bitcoin dominance means most money stays in Bitcoin instead of moving into altcoins.
4. How do stablecoins affect AltSeason?
Stablecoins provide buying power for altcoins, so a lower supply reduces the chances of a strong rally.
5. What could trigger the next AltSeason?
A drop in Bitcoin dominance, higher stablecoin inflows, and better market confidence could start
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