Signs of an Altcoin Season: Insights from Santiment Amid Bitcoins Record Surge

Market indicators suggest the onset of an altcoin season, though there are some concerning signs, according to experts from Santiment.

Bitcoin recently hit an all-time high, surpassing **$118,000**. In response, many leading cryptocurrencies have outperformed Bitcoin in price dynamics over the past week.

Major Ethereum wallets, holding 10,000 ETH or more, have collectively amassed 75.74% of the total supply of the coin. This marks the highest level of concentration among «whales» since May 2017, which the analysts consider a «strong bullish signal.»

The number of XRP wallets containing over 1 million coins has surged to a record 2,743, with the total amount of cryptocurrency held also increasing. Both trends are viewed as «very positive signs» for Ripple’s asset, as noted by Santiment.

Analysts predict that the altcoin season will persist as long as Bitcoin remains above the crucial psychological threshold of **$110,000**. This scenario allows traders to comfortably redistribute profits from the rise of «digital gold» into other altcoins.

One troubling signal is the MVRV metric for Bitcoin, which indicates that the market price to realized value ratio has exceeded the levels recorded back in May, when a previous all-time high was followed by a correction.

Santiment also highlighted that meme coins led the weekly growth across segments, with an increase of **17%**. This could potentially indicate the final phase of the market rally, according to the analysts.

*»When speculative assets lead the market, it can signify that greed is peaking,»* they stated.

For Ethereum, the exceedingly optimistic sentiment around the asset is a troubling sign, as it typically signals an approaching short-term price peak, according to Santiment.

The CoinMarketCap altcoin season index stands at **27**, indicating that traders still favor Bitcoin.

Bitcoin’s dominance is currently at **62.5%**. Analyst Matthew Highland remarked that, despite this, altcoins have shown impressive growth. Nevertheless, he believes a true rally will commence only after Bitcoin’s dominance drops to **45%**.

Lastly, it is worth noting that Adam Back, co-founder and CEO of Blockstream, referred to the boom in corporate Bitcoin treasuries as a **“profitable alternative”** to the altcoin season.