Altcoin Season Index Drops As Bitcoin Closes In On OI Gap

The altcoin sector suffered the most from the drop in the crypto markets, with Ethereum (ETH) experiencing more liquidations than Bitcoin (BTC). As of press time, the altcoin season index had fallen from its peak of 78 the previous week.

Bitcoin has responded to the drop by narrowing the gap, but its performance has also fallen short. The impact on open interest (OI) has been significant. Similarly, the altcoin market cap, which had earlier broken out, is back in the long-term accumulation.

Having said that, we will expound on whether the altcoin season stays on or is over, bearing in mind the short periods of previous altcoin seasons.

Altcoin Season Index Drops

The Altcoin Season index on CoinMarketCap showed a reading of 69, which was a fall from the high of 78 last week. In the past three months, most altcoins have outperformed BTC by returns, with last week’s moves indicating altcoin season.

MYX, MemeCore (M), Aster (ASTER), Story Protocol (IP), OKB, and Pudgy Penguins (PENGU) were the top-performing altcoins on this list.

The season is typically brief, indicating that it may be coming to an end, as was mentioned in a previous analysis on The Market Periodical. But as the year’s final quarter drew closer, past trends indicated that this performance might continue. Meanwhile, the Bitcoin rally may remain robust through the year’s end.

The annual high of the Altcoin Season Index happened in December 2024 with a value of 87, while its low of 12 was in late April 2025.

Bitcoin Closes In On Altcoin Open Interest

The analysis of the open interest indicated that Bitcoin was closing in on the gap that existed during the altcoin rally. CryptoQuant author Maartunn noted that the altcoin flush was accelerating. The results indicated that altcoins were being liquidated more than Bitcoin during this big correction.

From a numerical perspective, about $8 billion in altcoin open interest was cleared, taking the value to $63.85 billion when writing. On the other hand, Bitcoin saw a much smaller flush, with $1.5 billion in capital leaving its market. The altcoin flush was more than five times that of Bitcoin, indicating BTC was the stronger asset in terms of giant downturns.

Reducing the gap is necessary for the altcoin season to continue. Earlier warning signs from the analysts indicated what just happened. Such gaps needed reduction, as they showed Bitcoin was lagging. BTC could outperform altcoins again in the short term before the altcoin season resumes.

Still, there was a risk that the altcoin season could be over, as it historically averaged 17 days; that’s two weeks only.

Is the Altcoin Season Still On?

The altcoin market cap showed that the altcoin season was under threat. The massive cup-and-handle pattern had broken out, but this market capitalization fell back into the accumulation phase. The data indicated potential rejection toward the target at $2.8 trillion, double the current cap.

If the market respected the initial break, the altcoin market cap could surge by more than 70%, as per Milk Road. On the downside, if the breakdown persists, the altcoin season may come to an end.

Altogether, the current market signals indicated the potential end of an altcoin season, putting into consideration the timelines. Thus, traders needed to watch for indicators to flip to ascertain the season was still on.