Cryptocurrency traders are monitoring the Fear and Greed Index for signs of an altcoin season approaching.
In the ever-evolving world of cryptocurrencies, signs of an altcoin season are beginning to emerge, as suggested by recent market dynamics.
According to insights shared by Ibrahim Ajibade, a seasoned research analyst with a background in Web3 startups and financial organizations, an altcoin season may have commenced. Ajibade, who holds an undergraduate degree in Economics and is pursuing a Master’s in Blockchain and Distributed Ledger Technologies at the University of Malta, has highlighted Bitcoin Dominance dropping below the 60% level, a key support zone on the weekly timeframe, as a significant indicator.
The conditions for an altcoin season seem to be ripening, particularly in Q4 2025. However, it's important to note that a proper altcoin season, where altcoins outperform Bitcoin for more than a few days, is a rare occurrence. The last time such a season was observed was toward the end of 2024.
The Crypto Fear and Greed Index, a tool that measures the overall sentiment of the crypto market, currently stands at 50, indicating a neutral bias. This is a significant drop from the 74 reading last month, which reflected greedy conditions.
Meanwhile, the volatility of Bitcoin since mid-July has muted market expectations in the short term. At the time of writing, there is a possibility that Bitcoin could recover and seize control of capital flows, which could see the Bitcoin Dominance bounce higher.
In contrast, the altcoin index reading is at an impressive 61, the highest it has been in 2025. This suggests that altcoins are gaining traction compared to Bitcoin [BTC]. According to the altcoin index, an altcoin season is in place when 75% of the top 50 coins by market cap perform better than Bitcoin over 90 days.
One altcoin that has seen a dip recently is Cronos [CRO], which has dropped 12% amid a $20M outflow. However, a rebound is possible if certain conditions are met. This is a routine development during a bullish market phase when Bitcoin consolidates and altcoins catch up.
Investors should exercise patience in the coming weeks. The crypto market has seen increased gains for altcoins compared to Bitcoin [BTC] in recent weeks. If Bitcoin recovers, more capital could flow into altcoins later on to fuel the altseason.
Another interesting development is a large $8.85M whale purchase of Worldcoin (WLD). This could potentially set up a bullish scenario for WLD to reach its $1.1 target.
As always, it's crucial to approach the crypto market with caution and make informed decisions based on reliable data and analysis.
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