- Bitcoin hits $100K while Altseason Indicator falls near zero, marking the widest divergence in crypto market dynamics since 2020.
- BTC’s rise decouples from altcoins, reflecting its new identity as digital gold while altcoins struggle amid weak momentum and regulation.
- Institutional demand drives BTC’s surge as macro forces and market maturity isolate it from high-risk altcoin behavior across recent cycles.
The current spike in Bitcoin’s price has caused a record-breaking discrepancy between its value and the Altseason Indicator, according to CryptoRank. Bitcoin is currently trading between $80,000 and $85,000 as of April 16, 2025, a tiny decrease from its peak of over $100,000. The Altseason Indicator, however, has dropped to around zero. A change in market behavior not observed in the previous five years is shown by this discrepancy.
Historically, Bitcoin and altcoins shared similar growth cycles. During bull runs, they frequently peaked concurrently, as during the market rise of 2021. Recent data, however, indicates that this relationship has decreased. The direction of Bitcoin has diverged from the larger altcoin market since the middle of 2024. As a result, even as Bitcoin hit previously unheard-of heights, the Altseason Indicator, which tracks altcoin momentum, has fallen.
A Multi-Year Pattern Broken
From 2020 to early 2023, Bitcoin and the Altseason Indicator moved in relative harmony. Both rose during bullish phases and declined in downturns. Notably, the 2021 rally saw the Altseason Indicator spike to 0.90 as Bitcoin soared past $60,000. That alignment suggested a healthy, coordinated crypto market.
However, in recent months, that correlation has vanished. While Bitcoin nearly touched $100,000, the Altseason Indicator dropped to historic lows between 0.00 and 0.10. This is the first time such a wide divergence has emerged since the indicator’s tracking began. Besides, prior market recoveries always triggered some altcoin momentum. This time, altcoins remain largely stagnant.
Bitcoin Becomes Digital Gold
This shift signals Bitcoin’s evolution into a distinct asset class. It now mirrors gold more than it mirrors altcoins. Its role as a store of value has strengthened, attracting institutional demand. Conversely, altcoins still resemble high-risk startups fighting for market relevance.
Additionally, macroeconomic factors may be contributing. Investors view Bitcoin as a hedge, while altcoins suffer from regulatory uncertainty. Hence, capital continues flowing into Bitcoin while skipping the broader crypto market. Moreover, historical thresholds support this trend. The green line on the chart at 0.10 marks a tipping point. Bitcoin used to lag below $20,000 when the Altseason Indicator was this low. Today, that narrative has reversed.
