Altcoin season index rises to 41 – Analyst predicts a 60% upside

The crypto market reclaimed the $2.5 billion mark with some altcoins outperforming the broader market. Bitcoin [BTC] is approaching $80K, indicating a shift to a positive sentiment in the crypto market.

Analysts are expecting a bigger altcoin season than the previous cycles. Here is why.

Altcoins’ volume explodes

The volume of altcoins is at levels not seen in previous cycles. The CEX volume ratio for non-BTC against BTC excluding stablecoins is at 7, up from around 4 between 2019 and 2021.

The altcoin volume increasing trend on a monthly scale over the year has risen past the 5 mark.

This suggested this season could be much stronger than the last cycle. When trading volume is high at the bottom of the range, it is a sign of building upward momentum.

While the volume indicated a potential bull market, it did not guarantee a parabolic rally. The liquidity of individual altcoins on platforms like Uniswap [UNI] was still down.

Analyst predicts 60% upside

Michael van de Poppe, the founder of MN Fund, has backed the bullish projection. The analyst projected a 30% to 60% upside potential if Bitcoin’s price hits $86,000. This is because liquidity would rotate to categories like AI, memes, and DeFi, among others.

Michael noted that nearly everyone was unsuspecting if there was some upward momentum. He suggested that a ton of returns could come from these alternative crypto investments.

The growing momentum was evident on the Altcoin Season Index. The index increased from 25 to 41 in a month, suggesting more altcoins were starting to outperform BTC.

However, the real altcoin season happens if the index reaches 75 or more.

Is altcoin season coming?

On the charts, the market cap of alts excluding Bitcoin, Ethereum [ETH], and stablecoins confirmed a breakout.

They broke above a multimonth descending trendline after consolidating since the start of February. That took the market cap above the $742 billion mark.

If the season truly begins, the market capitalization of these altcoins could potentially rise to $1 billion. Back in 2021, a similar breakout marked the beginning of a massive rally. Still, this rally faces resistance at the $760 billion zone.

Altogether, there were enough signals to anticipate a much bigger rally than the previous. However, the rally was dependent on market dynamics for 2026.

Final Summary 

• Altcoin volume explodes, surpassing that of previous cycles, as analysts eye a bigger altcoin season. 
• Altcoins’ market cap confirmed a breakout from a multi-month trendline resistance.