They said altcoin season was coming... Why is only Bitcoin still rising?

It's not altcoin season yet... Funds are still flowing into Bitcoin

▲ Altcoin / ChatGPT generated image ©

Although the cryptocurrency market is showing an upward trend, funds remain centered on Bitcoin, and the overall rise of altcoins is limited.

According to CoinMarketCap, a cryptocurrency market data aggregation site, on April 26 (local time), the altcoin season index recorded 41, remaining in the 'Bitcoin season' phase. Bitcoin (BTC) market dominance also maintained 59.95%, continuing at a high level with no significant changes over the past 24 hours.

This trend suggests that the market has not yet entered a phase of expanding into risk assets. Despite the total market capitalization rising by 1.08%, funds are not actively moving into altcoins but remain in Bitcoin, indicating a phase where investors prefer more stable assets.

However, short-term surges were observed in some themes. Selective buying flowed into privacy blockchain and DeFi-related assets, with ZeroBase (ZBT) rising by 55.78% and Lido DAO (LDO) by 15.93%. However, this movement is a limited increase driven by specific news and narratives, and it is difficult to consider it an overall 'altcoin season' for the market.

Market sentiment also reinforces a Bitcoin-centric structure. Open interest in the derivatives market increased by 2.01% to $473.26 billion, but funding rates turned negative, indicating a cautious stance among leveraged investors. This is a typical trend where funds concentrate on Bitcoin, which has higher liquidity, rather than volatile altcoins.

Ultimately, the current market closely resembles a 'Bitcoin-led bull run.' For altcoins to truly lead the market, the altcoin season index would need to rise above 75, indicating widespread capital rotation. Thus, it is still considered to be in the early stages.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*