‘September altcoin season is over’ — What’s next for altcoins?

Altcoin Season Cooling Off, What's Next for Altcoins?

Introduction

The altcoin season has cooled off, with most altcoins experiencing sharp declines compared to Bitcoin. According to on-chain analyst Joao Wedson, the Altcoin Season Index has peaked, and Bitcoin may strengthen from now going forward.

Analysis of Altcoin Season

The altcoin season we experienced in September is already over. According to Wedson, the ASI indicator peaks tend to coincide with liquidity rotation back to Bitcoin and stablecoins. This is why several altcoins have seen much sharper declines compared to Bitcoin.

USDT Dominance and Altcoin Season

The level of profit-taking in the altcoins segment hit a 1-year high, with CryptoQuant data revealing record levels of Altcoins Exchange Inflow. However, this intense profit-taking triggers capital rotation to Bitcoin and stablecoins. Tether's USDT market share can help track both the said liquidity rotation and inflection points for altcoin rallies.

Short-term Recovery

For analyst Aaron Disher, there is even a likely short-term recovery for the altcoin rally. He believes that smaller altcoins are already showing strength while Bitcoin consolidates.

Conclusion

The altcoin season cooling off is a natural part of the market cycle. While some analysts believe that a short-term recovery is possible, it's essential to stay informed and adapt to the changing market conditions.

References

• AMBCrypto
• CryptoQuant
• Joao Wedson
• Aaron Disher