Altcoin season might postpone as $36B outflow signals weak need
The post Altcoin season may postpone as $36B outflow signals weak need appeared on BitcoinEthereumNews.com. Despite Bitcoin’s recent climb above $110,000, altcoins stay stuck in a bearish rut, raising doubts about whether the long-awaited “altcoin season” will materialize anytime soon. In short, altcoin investors are still sitting on the sidelines, even as Bitcoin dominates headlines. Investors often shift their gains into altcoins when Bitcoin starts and cools to consolidate.
Despite Bitcoin’s recent climb above $110,000, altcoins stay stuck in a bearish rut, raising doubts about whether the long-awaited “altcoin season” will materialize anytime soon. According to a June 18 analysis by CryptoQuant contributor Burrakesmeci, one metric tells a compelling story. The 1-Year Cumulative Buy/Sell Quote Volume Distinction for Altcoins, omitting Bitcoin (BTC) and Ethereum (ETH), now sits at $36 billion. This level suggests investors are still pulling cash from the altcoin market. The net demand from traders putting purchase versus sell quotes on altcoin pairs across exchanges is reflected in this metric. It often indicates peak interest and occasionally a local top when it turns positive, as it did in December 2024. The trend has since reversed, with sustained outflows rather than inflows, as confirmed by the current reading which is in very negative territory. In short, altcoin investors are still sitting on the sidelines, even as Bitcoin dominates headlines. This is important since the altseason typically has a set rhythm. Early bull cycles see Bitcoin at the top, especially after halving, as was the case in April 2024. This attracts capital. When Bitcoin cools and starts to consolidate, investors often move their gains into altcoins. Large-cap rallies like Ethereum are sustained by this rotation, which is followed by sector-specific spikes in memecoins, AI tokens, and other narratives. Conditions do not currently favor that shift. The Altcoin Season Index is stuck below 30, far below the 75 threshold. Bitcoin dominance is still high at 64%, and risk appetite beyond BTC and ETH seems to be muted. Although the ETH/BTC ratio is rising, currently at 0.02405, and Ethereum has recently outperformed Bitcoin on a 90-day basis, these signals are not definitive and preliminary. Macro conditions may also be delaying the altseason. The amount of capital available for speculative assets like altcoins is constrained by ongoing quantitative tightening and persistently high interest rates. If rate cuts occur or Bitcoin’s dominance diminishes, some analysts predict a shift in late 2025. If there is no clear Ethereum breakout or regulatory clarity, others warn that the wait may extend until 2026. The signal is clear for the time being. The road to altcoin season is still blocked in the absence of a reversal in volume flows, and it is hard to ignore the $36 billion in lost demand.
Source: Crypto News
