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Can PMI above 50 trigger Altcoin Season in 2026?

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Can PMI above 50 trigger Altcoin Season in 2026? - 2

As macro conditions regain influence over digital assets, investors are increasingly asking whether a rebound in economic activity, particularly a Purchasing Managers Index (PMI) reading above 50, could ignite the next altcoin season.

Summary

  • PMI above 50 would signal improving economic conditions and a potential return of risk appetite
  • Nearly 40% of altcoins trading near all-time lows reflects extreme weakness but possible late-stage capitulation
  • Bitcoin dominance remains elevated, suggesting rotation into altcoins has not yet begun

What PMI means for Altcoin Season

The Purchasing Managers’ Index (PMI) is a forward-looking economic indicator that measures manufacturing and services activity. A reading above 50 signals expansion, while below 50 indicates contraction.

Crypto markets, especially altcoins, are highly sensitive to liquidity and risk appetite. When PMI rises above 50 after a contraction phase, it typically signals improving growth expectations, stronger corporate activity, and loosening financial conditions.

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Historically, periods of macro expansion have coincided with greater investor willingness to rotate into higher-beta assets, including mid- and small-cap cryptocurrencies.

Bitcoin often reacts first to improving macro conditions, benefiting from institutional flows. Altcoin season tends to follow when investors move further out the risk curve in search of higher returns. In prior cycles, altcoin rallies have emerged during early-to-mid expansion phases when liquidity conditions improved but speculative excess had not yet peaked.

Current conditions: Pressure before rotation?

However, the present backdrop remains fragile.

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According to a CryptoQuant analyst, 38% of altcoins are trading near their all-time lows, a worse reading than both April 2025 (35%) and even the immediate aftermath of the FTX collapse (37.8%). This marks the deepest regression for altcoins in the current cycle, underscoring persistent risk aversion.

Can PMI above 50 trigger Altcoin Season in 2026? - 2
Percentage of altcoins near ATL | Source: Cryptoquant

Moreover, the Bitcoin Dominance (BTC.D) chart reinforces this narrative. Dominance remains elevated near 58–59%, after peaking around 60% in February.

Can PMI above 50 trigger Altcoin Season in 2026? - 3
Bitcoin Dominance chart | Source: Crypto.News

While BTC.D has pulled back slightly from local highs, it has not broken into a decisive downtrend, a necessary condition for sustained altcoin outperformance.

For a PMI-driven altcoin season to materialize, three things likely need to occur simultaneously: PMI moving sustainably above 50, Bitcoin consolidating rather than trending sharply higher, and BTC dominance breaking below key support to confirm capital rotation.

Until then, macro stabilization may first benefit Bitcoin before liquidity meaningfully spreads into the broader altcoin market.

In short, a PMI recovery could be the spark, but dominance trends suggest altcoin season has not yet begun.

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Crypto World

Trump Gives Hormuz Ultimatum in 48 Hours as Oil Surges

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Crypto Breaking News

Strategic Waterway at Risk

The Strait of Hormuz is also one of the most important routes of oil transit in the world, and its interruption has already attracted international attention. The US stance has been supported by several nations such as the United Kingdom, France, and Germany, which have put pressure on Iran to allow normal shipping activities. Furthermore, the Gulf countries have also highlighted the necessity to maintain the energy routes steadily to avoid the broader economic impact in case the US attacks. Iran has replied that any assault by the US will be met with attacks on the infrastructure in the region that benefits the US. Energy plants, technology systems, and desalination plants may serve as targets in the case of further escalation, according to the officials. This was also in response to an alleged missile attack associated with Iran on the Haifa refinery in Israel that fueled more tension in the region.

Oil markets responded swiftly to the events, with oil prices rising to approximately 98 dollars per barrel, indicating the increasing supply fears. The traders considered the possibility of extended unrest in the Gulf region, which would constrict global supplies. In addition, analysts observed that strategic reserves might fail to counter lasting supply shocks in the event that the conflict spreads to international markets. The cryptocurrency market revealed a new vulnerability as geopolitical risks rose amidst global markets. Major digital assets suffered losses with investors moving to less risky assets due to uncertainty. The larger risk-off mood thus persisted to press crypto prices even though they have tried to recover in the recent past.

The situation in the financial markets is delicate to any additional update, with each group taking a strong stand. On another indicator, investors are keeping a close eye on any diplomatic happenings that will reduce tensions or avert escalation. Nevertheless, with additional uncertainty surrounding the Strait of Hormuz, volatility can be expected to continue in the near term in both oil and digital asset markets.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Robinhood (HOOD) lifts buyback program to $1.5 billion

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Robinhood (HOOD) lifts buyback program to $1.5 billion

Robinhood’s (HOOD) board has approved a new $1.5 billion share repurchase program, according to an 8-K filing with the U.S. Securities and Exchange Commission.

It adds more than $1.1 billion to existing buyback capacity.

The company said it expects to carry out the plan over about three years starting in the first quarter of 2026, though it is not required to buy a fixed amount.

Alongside the buyback, Robinhood also strengthened its access to funding. Its subsidiary, Robinhood Securities, entered into an updated credit agreement with lenders led by JPMorgan. The deal expands a revolving credit facility to $3.25 billion, up from $2.65 billion, with the option to increase total commitments to $4.875 billion.

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One of last year’s hottest stocks, in large part thanks to the boom in crypto-related trading, HOOD has lost more than 50% of its value since bitcoin topped in early October. Shares are up 1.4% in after hours trading.

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Bitcoin Holders Move to Cash as Volatility Remains High

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Cryptocurrencies, Federal Reserve, Israel, Bitcoin Price, Iran, Markets, United States, Cryptocurrency Exchange, Price Analysis, Market Analysis

Bitcoin (BTC) holders are gradually becoming less prone to panic selling and instead building up cash buffers to deploy during discounted BTC buying opportunities. Onchain data supports this view, highlighting a large surge in stablecoin activity, with USD Coin (USDC) and Tether’s USDt (USDT) transfers reaching a combined $440 billion on March 22. 

This shift in investor behavior aligns with the increasing risk-off approach seen in markets as the United States Federal Reserve dismissed near-term interest rate cut expectations, amid rising energy prices due to the ongoing US and Israel-Iran war.

Bitcoin realized volatility expands, but investors are cool headed

Bitcoin’s recent price action highlights a volatile market. It dropped 3.75% to $67,300 on Sunday before rebounding above $71,700 on Monday, with the move largely driven by news around the US and Israel-Iran war.

As a result, BTC’s realized volatility, which measures how much the price has actually moved over a given period, remains elevated across multiple time frames. The three-month and six-month realized volatility measures have climbed to 107% and 148%, respectively, up from 60% and 94.5% over the past six months. 

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Cryptocurrencies, Federal Reserve, Israel, Bitcoin Price, Iran, Markets, United States, Cryptocurrency Exchange, Price Analysis, Market Analysis
BTC realized volatility. Source: CryptoQuant

However, the long-term one-year realized volatility has remained unchanged near 180% during this period. That suggests the market isn’t in full panic mode, and it is dealing with uncertainty without widespread forced selling.

Stablecoin flows provide important context for this environment. On March 22, the total number of USDC tokens transferred surged to 368 billion, marking a roughly 2,081% daily increase to an all-time high, while USDT transfers on the Ethereum network reached 72 billion.

Cryptocurrencies, Federal Reserve, Israel, Bitcoin Price, Iran, Markets, United States, Cryptocurrency Exchange, Price Analysis, Market Analysis
BTC price, USDC, and USDT token transferred chart. Source: CryptoQuant

These stablecoin flows point to a rapid capital rotation and repositioning. The market participants are actively moving funds into stablecoins as a temporary store of value, creating a “cash buffer” that can be redeployed quickly.

This dynamic often emerges in volatile conditions, where traders may prioritize monitoring the price over high exposure.

Related: What happens to Bitcoin if US bond yields soar above 5%?

Spot and futures activity remain below bull market highs

Futures data further reinforces the current sidelined sentiment. BTC open interest (in USD) is down $19 billion over the past six months, indicating a steady reduction in leveraged exposure. This unwind reflects a market that is de-risking rather than building aggressive positions.

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Cryptocurrencies, Federal Reserve, Israel, Bitcoin Price, Iran, Markets, United States, Cryptocurrency Exchange, Price Analysis, Market Analysis
BTCUSDT, aggregated open interest, and funding rate. Source: velo.data

Aggregated funding rates have cooled to 0.01% from overheated levels near 0.1% in July-August 2025, occasionally flipping negative, while the perpetual futures premium continues to trade at a discount to spot.

Together, these signals point to subdued leverage demand and a market lacking strong directional conviction, with a slight bearish tilt.

The spot market activity paints a similar picture. Cointelegraph reported that Binance is on track to record its lowest monthly spot volume since September 2023, with volumes hovering near $52 billion.

The current participation levels align more closely with periods of reduced engagement seen during prior bear market cycles in 2022-2023.

Thus, the crypto market has strong liquidity, with capital actively moving through stablecoins, but it isn’t being deployed into Bitcoin yet, and BTC holders continue to observe the current market.

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Related: Bitcoin value ‘off the chart’ as BTC price metric hits record lows in 2026