Glassnode's Altcoin Cycle Signal flipped from Bitcoin season to altcoin season this week, marking a shift in market dynamics as the cryptocurrency rally broadened beyond Bitcoin alone.
The indicator, which compares Bitcoin's performance against a market-cap-weighted basket of the top 250 altcoins excluding stablecoins, turned blue—representing altcoin season—as Bitcoin climbed past $87,000. August had seen Bitcoin rally while altcoins remained relatively flat, but this week's market movement ignited broader participation across the altcoin market.
Bitcoin traded above $85,000 at the time of reporting, up 5% in 24 hours and more than 10% across the week. The cryptocurrency briefly exceeded $87,000 on Monday, reaching a level not seen since late January. Ethereum gained 10% over the week, climbing past $2,700.
Other major cryptocurrencies also posted gains: BNB crossed $800 for the first time since late January, XRP jumped from around $1.40 to above $1.50, and Dogecoin led larger-cap alternatives with a 24-hour gain above 15%. The total cryptocurrency market cap rose 3.6% to over $3 trillion, with Bitcoin's market share at 57%.
The rally came after a difficult preceding week that included the Senate voting against advancing the CLARITY Act and the Federal Reserve raising interest rates for the first time since July 2023. Bitcoin had fallen to a multi-week low near $75,000 before recovering above $80,000.
Technical analysis shows mixed signals about the rally's sustainability. Bitcoin was trading above both the True Market Mean and short-term holder cost basis levels, historically associated with sustained uptrends. However, some analysts flagged potential pullback risks, while others pointed to favorable macro conditions as a foundation for continued strength.
