This article was first published on Deythere.
- Exchange Outflows Suggest Investors Are Holding Rather Than Selling
- Altcoin Cycle Signal Reaches Its Highest Level Since 2022
- Bitcoin Still Controls the Market
- Is Altcoin Season Really Back?
- Conclusion
- Glossary
- Frequently Asked Questions About Altcoin Season
- What is altcoin season?
- Why are exchange outflows important?
- What does an Altcoin Cycle Signal of 86 mean?
- Is a full altcoin season confirmed?
- References
New market data has shown that altcoin supply on exchanges is getting tighter, as well as improving market’s breadth, spurring hopes of an Altcoin season even though Bitcoin continues to dominate overall crypto market direction.
Data from Gate’s net flow metrics shows that several altcoins have been seeing sustained withdrawal activity from late 2025 through mid-June 2026.
In past cycles, when there is a prolonged period of exchange outflows, it means investors are accumulating and as a result, this reduces available supply and potentially creates conditions for future price appreciation if demand returns.
Exchange Outflows Suggest Investors Are Holding Rather Than Selling
One of the strongest arguments for the emerging altcoin season euphoria is the fact that a growing number of altcoins are showing withdrawal dominant behavior.
According to the data, several altcoins have seen more tokens leaving exchanges than entering them since late 2025. Now, withdrawals don’t necessarily mean investors are buying up the coins, but prolonged net outflows typically suggest investors are moving money out of exchanges and into long-term storage, or into self-custody, as opposed to just getting ready to sell.
However, not all assets are behaving in the same way. Ethereum, Chainlink, Uniswap, and 1inch have all been seeing relatively more deposits compared with withdrawals. This suggests that capital is rotating selectively across the market, and not flowing uniformly into every single altcoin.
Unlike previous cycles where a broad-based rally sends most assets soaring simultaneously, this year has become a story of markets driven by specific sectors and narratives. Analysts have been noting that liquidity remains concentrated in a small group of assets despite overall sentiment improving elsewhere.
Altcoin Cycle Signal Reaches Its Highest Level Since 2022
Another development that is getting attention right now is the rise in the Altcoin Cycle Signal.
The indicator recently climbed up to 86, which is the highest reading seen since late 2022. It officially puts the market in what some analysts would call “Altcoin Season” territory. Glassnode pointed this move out this week, but also noted that the signal has been influenced partly by Bitcoin’s sharp drawdown.
For much of 2024 and early 2025, that same indicator was stuck below the critical 50 threshold, showing a market where Bitcoin dominated the crypto scene.
The improvement suggests that selling pressure across many altcoins may be starting to fade after a long period of weakness.
The observation aligns with analysis from CryptoQuant, which recently reported that altcoin spot-market selling pressure had reached a five-year extreme after roughly 15 months of net selling. Such conditions often pop up just before a market is getting close to exhaustion but they don’t guarantee an immediate recovery by any means.
Bitcoin Still Controls the Market
Despite these stronger altcoin season signals, Bitcoin is still the one controlling the crypto markets.
As at press time, Bitcoin was trading at around $64,000 while long-term holders continued to accumulate despite slowing ETF inflows.
Bitcoin dominance remains elevated, sitting near the 58-60% range, showing that a large piece of market liquidity is still concentrated in BTC and not rotating into the alternative assets.
Usually, major altcoin rallies tend to kick in once Bitcoin has stabilized after a strong run. Capital initially flows into Bitcoin, then into Ethereum, followed by the large-cap altcoins and eventually the smaller tokens.
Current market conditions look like they might be preparing for that to happen in a few specific areas, but a full market-wide rotation still hasn’t materialized yet.
This is why some analysts are still cautious despite the improving indicators. While market breadth is definitely expanding, Bitcoin is still the one setting the tone for risk appetite across the whole digital asset market.
Is Altcoin Season Really Back?
The evidence is still mixed. There’s a tightening of exchange supply for a lot of altcoins, and market breadth is looking a lot better. The Altcoin Cycle Signal has just reached about 86 and there are fewer aggressive sellers than they were in the earlier cycle.
However, a genuine altcoin season usually needs a broader participation across the market, falling Bitcoin dominance, and sustained rotation of capital into other assets and that hasn’t happened yet.
Instead, the market appears to be transitioning from outright Bitcoin dominance toward selective altcoin participation.
If Bitcoin stays stable around current levels and the macro conditions improve, the altcoins that are already showing sustained exchange outflows probably stand a good chance of being among the first to benefit from renewed speculative interest.
Conclusion
Latest data is suggesting that the foundation for a potential altcoin season is getting stronger. There are exchange outflows reducing the available supply, accumulation signals are looking better, and the market breadth has improved a lot more than it has over the past couple of years.
Still, Bitcoin leads the market. Until BTC gets sustained stability and liquidity starts to rotate more broadly, investors may continue to be seeing some very selective winners instead of a full-on altcoin rally.
Glossary
Altcoin Season: The phase of the market where altcoins tend to outperform Bitcoin.
Exchange Outflows: The point at which coins are being withdrawn from exchanges into one’s own wallets or other platforms.
Bitcoin Dominance: The share of the total cryptocurrency market capitalization that Bitcoin is holding.
Market Breadth: A measure of how many different assets are participating in a particular market move.
Capital Rotation: When investor funds are being moved from one asset class or sector to another.
Frequently Asked Questions About Altcoin Season
What is altcoin season?
Altcoin season is a period when most alternative cryptocurrencies are outperforming Bitcoin over a sustained period.
Why are exchange outflows important?
Exchange outflows are a good indicator that investors are holding onto their coins not selling them which in turn reduces the available supply in the market.
What does an Altcoin Cycle Signal of 86 mean?
A reading of 86 suggests that altcoin market breadth has made a fairly strong improvement and is even starting to get into altcoin season territory according to some analysts.
Is a full altcoin season confirmed?
Not yet. Bitcoin dominance is still high and capital rotation is still selective rather than being broad-based.
References
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