Altcoin season hasn’t officially started, but promising signs are becoming more apparent. According to CoinMarketCap’s Altcoin Season Index, it currently stands at 44 out of 100, needing to reach a threshold of 75 to signal the onset of an altcoin season. Over the past month, Bitcoin 
$76,429 dominance, or the market share of the largest cryptocurrency, has decreased by 6%, landing at approximately 58.5%. Bitfinex analysts believe that the approval of altcoin ETFs will be the key factor unlocking the doors to altcoin season.
Bitfinex’s Perspective on the Impact of ETF Approvals
According to a report by the crypto exchange Bitfinex, the altcoin market needs more ETF launches to see a widespread rally. The report suggests that with the approval of altcoin ETFs, institutional capital flow that has been witnessed in Bitcoin and Ethereum 
$2,262 will extend to altcoins. This would ensure sustainable and price-independent demand for these products. Analysts at Bitfinex do not anticipate a strong market-wide rally until these approvals are obtained.
Spot Bitcoin ETFs have been active and open for transactions for 19 months, as of January 2024. Spot Ethereum ETFs have similarly been operational for nearly 13 months. Attention is now focused on Solana 
$83, XRP, and even memecoin-based ETFs. However, the U.S. Securities and Exchange Commission’s (SEC) recent decision to postpone the application decisions for Truth Social’s Bitcoin-Ethereum ETF, 21Shares and Bitwise’s Solana ETF, and 21Shares’s Core XRP ETF introduces uncertainty in the ETF space.
Bloomberg’s Eric Balchunas anticipates that the number of cryptocurrency ETFs under management, including those featuring memecoin baskets, will increase by 2026 with SEC approvals.
When Will Altcoin Season Begin?
There is considerable disagreement among experts and analysts about the exact timing of altcoin season. Coinbase Institutional Research Head David Duong believes that the current conditions may lay the groundwork for a full-scale altcoin season as early as September. However, Bitfinex analysts project that altcoin season might emerge later in the year.
Experienced crypto analyst Michael van de Poppe views the recent correction as a repositioning opportunity, specifically for Ethereum and altcoins, forecasting a major surge in the year’s final quarter.
Currently, market appetite remains limited. Bitfinex analysts have noted a positive inflow of capital to the market, but it’s softer compared to earlier peak demand periods. Despite Bitcoin’s movements, this has resulted in limited and pressured activity in altcoins.
