Compared to the beginning of May, the global cryptocurrency market capitalization is not as strong. The value of the global cryptocurrency market stood at $2.56 trillion at the time of publication.
At the same time, the market capitalization of the altcoin was $1.097 trillion.
However, CoinMarketCap’s altcoin index was at 38 at the time of writing, indicating that the altcoin season has little room as the Bitcoin (BTC) season is still strong.
However, zooming out shows that the cryptocurrency market is in a bullish zone as Bitcoin has moved back above the $75,000 price level.
What is behind this rebound?
After days of geopolitical pressure, US President Donald Trump’s announcement that a peace deal with Iran had been “broadly negotiated” eased market concerns and sparked a surge in the cryptocurrency market.
Interestingly, altcoins outperformed Bitcoin in this case. This indicates that traders returned to riskier assets after headlines about the peace deal eased their immediate anxiety.
Part of the rally has been driven by AI-related tokens. Worldcoin (WLD) is up 11.7% and NEAR Protocol (NEAR) is up 17.7% in a single day and over 58% in a week.
Zcash (ZEC) gained 7.1% on the day, indicating that privacy-related assets also increased. During the same period, other major altcoins such as Ondo (ONDO) rebounded 15% and Hyperliquid (HYPE) recovered 12.3%.
Additionally, this jump also took place after Bitcoin Pizza Day.
Even with all this momentum, the altcoin index is still below the 75 level which would signal the start of the altcoin season.
Market Sentiment Past and Present Around Altcoin Season
On this subject, a well-known analyst, Michaël van de Poppe, said:
This is a very different situation from that observed at the end of April.
According to what AMBCrypto previously reported, analysts at the time determined that the price action resembled the accumulation phase preceding previous seasons.
Therefore, they predicted that a significant altcoin rally could occur in 2026 or 2027 if the pattern repeats itself.
Indeed, there is also an increase in the deposit of these coins in the ETF space. HYPE ETF inflows outpaced Ethereum (ETH) for five out of six days and Bitcoin for three out of six days.
Additionally, asset managers Grayscale and VanEck amended their S-1 filings with the SEC.
What do the other on-chain metrics refer to?
However, the 14-day average correlation between altcoins and bitcoin, which tracks bitcoin price action, indicates that altcoin season is not here yet. According to the metric, the crypto market continues to act as if Bitcoin is the main mover and altcoins are mostly passengers.
Additionally, a chart showing the percentage of altcoins trading near their all-time lows supports the idea that even though Bitcoin is doing well, the average altcoin is still having a terrible time.
Final Summary
- The overall crypto market rebounded after President Trump’s announcement, but altcoins gained more.
- However, altcoin season and other on-chain metrics suggest that altcoin season is not anywhere near the horizon.
