Altcoin Recovery Possible? Key Factors Involving Bitcoin Dominance Analyzed
The post Altcoin Recovery Possible? Key Factors Involving Bitcoin Dominance Analyzed appeared on BitcoinEthereumNews.com.
The altcoin market experienced a sharp downturn starting October 7, 2025, losing $384 billion in market capitalization by November 21. This plunge, excluding stablecoins, Bitcoin, and Ethereum, mirrors past four-month declines of 53%, but recovery depends on capital rotation, on-chain activity, and Bitcoin-altcoin de-correlation. Altcoin Seasonal Index signals dominance of Bitcoin, with capital concentration keeping altcoins in neutral territory below 75. On-chain metrics like TVL at $119.09 billion indicate slight rebound but persistent investor caution via stablecoin preferences. Bitcoin-altcoin correlation analysis shows de-correlation periods, such as August to October 2025, fostering altcoin inflows when alt performance outpaces Bitcoin by key percentages. Explore the altcoin market downturn from October 2025 and factors driving potential reversal. Analyze seasonal indexes and on-chain data for investment insights—stay ahead in crypto trends today. What Caused the Recent Altcoin Market Downturn? Altcoin market downturn began on October 7, 2025, triggered by broader market pressures leading to a $384 billion capitalization loss by November 21, per TradingView data excluding stablecoins, Bitcoin, and Ethereum. This sharp decline echoes historical patterns, including a 53% drop over four months from December 2024 to April 2025, highlighting vulnerability to capital outflows. Key drivers include reduced investor appetite for riskier assets amid economic uncertainties. How Does the Altcoin Seasonal Index Influence Market Recovery? The Altcoin Seasonal Index tracks capital rotation between Bitcoin and altcoins, currently showing heavy Bitcoin dominance that suppresses altcoin rallies. Data from Alphractal indicates many altcoins linger in a neutral RSI range of 40-50, signaling stagnation rather than bullish momentum. A reversal could emerge if the index surpasses 75, as seen in the last confirmed altcoin season on December 4, 2024, when it hit 87 according to CoinMarketCap. This threshold often precedes weeks-long rallies in sectors like privacy tokens, drawing inflows away from Bitcoin. Historical analysis reveals that sustained…
Filed under: News - @ November 30, 2025 11:16 am