Altcoin Sentiment Cools as Bitcoin Dominance Climbs
The crypto market's altcoin season index plunged to 21 from July's 55, signaling waning appetite for speculative tokens. Bitcoin's dominance surged to 58%—its highest level since January—while ethereum bucked the trend with an 11% dominance reading.
Celestia, Ethena, and Cronos led the altcoin rout with 60%+ drops. The selloff accelerated after October's deleveraging event, which saw open interest contract to $122 billion amid fear-driven outflows.
Market structure now favors blue-chip assets, with traders rotating out of meme coins and smaller-cap tokens. The shift mirrors 2023's pattern where Bitcoin outperformed during risk-off periods.