At the same time, global geopolitical tensions have been increasing Bitcoin’s dominance while causing capital outflows from altcoins. Moreover, the presence of more than 17 million altcoins in the market leads to excessive capital dispersion, hindering overall growth. Here are the top three reasons why the altcoin season is being delayed. 

Increased Altcoin Selling Pressure and Lack of Confidence 

CryptoQuant’s “1-Year Cumulative Bid/Ask Volume Delta” shows a continued net sell pressure of $36 billion in altcoins. This negative delta reflects a risk-off sentiment, with investors increasingly offloading their altcoin holdings. Investors seeking safer options have lost interest in altcoins in the short term. For a recovery, the buy volume must surpass the sell volume — a condition that has not yet been met. Analysts emphasize that this metric must turn positive for an altcoin season to begin. 

Geopolitical Instability and Bitcoin Dominance 

Recent global conflicts, such as the Israel-Iran clash, have negatively impacted the altcoin market. In such crises, investors turn to Bitcoin as a safe haven. While Bitcoin shows price volatility, altcoins suffer deeper losses. As a result, Bitcoin Dominance (BTC.D) has surpassed 64% and continues its upward trend with six consecutive green weekly candles. Analysts believe that geopolitical risks could persist for weeks or even months, keeping risk-averse sentiment high toward altcoins. This makes a near-term altcoin season unlikely. 

Record Increase in Altcoin Numbers and Market Dilution 

According to CoinMarketCap, the number of altcoin projects exceeded 17.34 million as of June 2025 — a staggering 850x increase compared to the end of 2021. However, this surge has caused extreme market fragmentation. Capital is spread too thin across countless small tokens, limiting overall market growth. The total altcoin market cap stands at $1.13 trillion, still 30% below its 2021 peak. As a result, most small projects struggle to succeed. Nonetheless, major projects like Ethereum, Solana, and XRP continue to attract investor attention. Even if an altcoin season begins, only strong, select projects are likely to benefit. 

Bitcoin Struggles to Surpass the $112K Threshold – Here’s Why 

Due to high sell pressure, growing Bitcoin dominance fueled by geopolitical uncertainty, and excessive capital dilution across the altcoin space, it may take longer for altcoins to recover. Until market conditions and investor sentiment improve, expecting a full-fledged altcoin season might be unrealistic. Investors would be wise to focus on fundamentally strong major projects. 

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The post 3 Major Factors Delaying the Altcoin Season!  appeared first on Coin Engineer.

After the FTX crash in November 2022, BTC dominance fell below 40% and the subsequent bear market pushed Bitcoin to $16,000. However, since then, BTC dominance has been on an upward trend and BTC’s market share has increased, especially as altcoins like Ethereum have been losing market share.

Ethereum’s dominance has fallen below 14% for the first time this week, a three-and-a-half-year low, after falling by 30% in the past year. This further increased Bitcoin’s market share.

Will Bitcoin Dominance Decline?

On September 16, analyst ‘Rekt Capital’ noted that Bitcoin’s market dominance had closed at 57.68% for the week, marking the first time it had broken above a major support/resistance level since April 2019. The analyst said that the last time such a close occurred, it started a multi-month uptrend in Bitcoin dominance, reaching as high as 71%.

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In early 2021, BTC dominance hit 70%, but it quickly fell to 40% during that year’s altcoin season. Some analysts, however, suggest that Bitcoin dominance has peaked and a pullback could kick off an altcoin season this cycle.

Analyst ‘Cryptollica’ told his 30,000 X followers that Bitcoin’s dominance could fall to 35% by mid-2025. Similarly, crypto YouTuber Kyle Doops stated in a post on September 17 that this significant change will affect market trends and could shape the altcoin season.

Steven Cook, founder and CIO of Dira Capital, stated that despite the recent discussions on Bitcoin dominance, this movement is close to completion. Cook predicted that BTC dominance could rise above 60% for a few more months, but added that assessments on this should have been made approximately two years ago.

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The post Bitcoin Dominance Reaches Multi-Year High: What It Means for Altcoins appeared first on Coin Engineer.