Crypto markets have struggled in recent months, with bitcoin falling more than 50% from its late-2025 peak after a sharp June selloff driven by persistent exchange-traded fund (ETF) outflows, elevated interest rates and weaker risk appetite.

Ether (ETH) and most major altcoins have underperformed bitcoin during the downturn, although a handful of sectors, including decentralized finance (DeFi) and tokenization, have shown relative resilience.

While crypto adoption is expanding across stablecoins, tokenized real-world assets, onchain credit and DeFi, the bank argued that usage alone does not drive token value. Instead, long-term winners will convert activity into sustainable cash flow or lasting monetary demand.

Cantor identified Hyperliquid as the clearest example of fee-driven token economics through HYPE buybacks and burns, while bitcoin remains the benchmark monetary asset and Ethereum the dominant collateral layer for onchain finance.

Solana, Sui, XRP and Zcash each have differentiated strengths, the report said, but still need to prove they can translate ecosystem growth into durable token demand.

The bank also highlighted digital asset treasury companies as an overlooked investment theme, arguing the strongest firms are evolving beyond passive crypto holders into active operators that generate yield, build infrastructure and provide institutional access to digital assets.

It initiated coverage of digital asset treasury companies Forward Industries (FWDI) and Cypherpunk Technologies (CYPH) with overweight ratings and price targets of $7.90 and $0.90, respectively.

TLDR

• Goldman Sachs increased its S&P 500 year-end projection to 8,000 from 7,600
• The upcoming Q2 earnings season beginning in mid-July represents a crucial moment for market direction
• Artificial intelligence infrastructure investments are projected to contribute approximately 50% of S&P 500 earnings expansion in 2026
• During the week closing June 25, hedge funds dumped technology equities at the most aggressive rate since 2016
• The Magnificent Seven tech giants shed more than $2.3 trillion in combined valuation throughout June

On May 26, Goldman Sachs elevated its S&P 500 year-end forecast to 8,000, marking an increase from its previous 7,600 projection. The investment bank’s chief U.S. equity strategist Ben Snider detailed this position in a research note dated June 28.

The foundation of Goldman’s thesis is simple. The 2026 equity market advance has been fueled predominantly by earnings expansion rather than multiple expansion — meaning actual profit growth, not investors willing to pay more for existing earnings.

Snider characterized the upcoming Q2 earnings cycle as “a critical test.” Strong corporate results would provide fundamental support for the rally’s continuation. Disappointing numbers, however, would represent the most significant threat to market stability this year.

Goldman’s Earnings Growth Projections

Goldman’s earnings-per-share projection for the S&P 500 in 2026 sits at $340, representing a 24% year-over-year jump. Looking ahead to 2027, the firm anticipates $385 per share, translating to an additional 13% gain.

FactSet data shows Q2 earnings growth estimates at 22%, a notable increase from the 18.7% expectation at the quarter’s outset. Revenue expansion is forecast at 12.1%, marking the most robust growth rate since the second quarter of 2022.

Market reactions to earnings disappointments have been particularly severe. Companies failing to meet analyst expectations have experienced average stock declines of 4.2%, significantly exceeding the historical norm of 2.9%.

With the S&P 500 currently positioned around 7,365, Goldman’s 8,000 forecast suggests approximately 9% additional upside potential.

Artificial Intelligence Spending Underpins Growth Thesis

According to Goldman’s analysis, AI infrastructure capital deployment will generate roughly half of total S&P 500 earnings growth during 2026.

The biggest technology corporations are projected to allocate approximately $754 billion toward capital expenditures this year. This represents an 83% surge compared to 2025 levels. Goldman forecasts this figure climbing to $905 billion in 2027.

Goldman’s proprietary basket tracking AI data center construction-related equities has delivered nearly 60% returns year-to-date. While semiconductor companies remain the primary direct winners, hardware manufacturers, industrial firms, and utility providers are also experiencing earnings tailwinds.

The S&P 500 currently trades at approximately 21 times forward earnings, a valuation higher than roughly 87% of readings over the past four decades. Goldman maintains that near-record corporate profit margins and comparatively moderate interest rates support this elevated multiple.

The seven dominant technology companies — Nvidia, Apple, Alphabet, Microsoft, Amazon, Broadcom, and Meta — collectively generate a 44% return on equity. Goldman projects this metric will decline by an average of 700 basis points next year as depreciation expenses increase at major tech firms.

Smart Money Retreats From Technology Sector

While Goldman maintains its optimistic earnings outlook, hedge funds are rapidly reducing technology sector allocations.

Goldman’s prime brokerage data revealed that hedge funds liquidated technology stocks during the week ending June 25 at the most intense pace since the firm initiated tracking in 2016.

The Magnificent Seven — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla — comprised approximately 21.5% of hedge fund U.S. equity portfolios at the beginning of 2026. This concentration has contracted to 14.5%, marking the steepest six-month decline since the 2022 bear market.

This elite group of stocks erased over $2.3 trillion in aggregate market capitalization during June alone.

Goldman’s baseline scenario maintains that robust earnings performance, propelled by AI-related spending, will sustain equity markets through year-end. Q2 earnings reporting commences in mid-July, led by major financial institutions.

ESMA itself said in a February statement that firms with derivatives marketed as “perpetual futures” are likely to fall under the existing product-intervention measures on contracts for difference (CFDs). The commercial name, ESMA said, is irrelevant. Even voluntary negative-balance protection does not alter the analysis. If a perp meets the CFD definition, all CFD rules apply: leverage limits, a mandatory risk warning, margin close-out, negative balance protection and a ban on trading incentives. Those restrictions are a heavy burden on licensed derivatives providers in Europe.The offshore market is teeming with sharksA European investor can open an account at Hyperliquid, the largest decentralized perp trading platform, and take Bitcoin exposure with 50x leverage. Other platforms, like Aster, offer up to 200x leverage on bitcoin. Neither platform is authorized under MiCA or the Markets in Financial Instruments Directive (MiFID), which covers derivatives trading in the EU. There’s no loss limit that the EU can enforce, no key information document, no bonus ban, and no close-out rule, and they’re available to anyone with a self-custody wallet and a few minutes of free time.

And without those protections, retail investors almost always lose: when ESMA and national regulators reviewed the data in 2018, 74% to 89% of retail investment accounts lose money on CFDs across EU jurisdictions, with average losses per client ranging from €1,600 to €29,000.

Key Highlights

• Shares climbed 2.42% in premarket sessions Wednesday, trading at $119.49
• The data analytics firm unveiled a sovereign AI collaboration with Nvidia targeting U.S. federal agencies
• Palantir broadened its existing partnership with Surf Air Mobility to fast-track SurfOS platform development
• Financial disclosures showed President Trump maintains a minimum $1 million position in the company
• Year-to-date performance shows PLTR down approximately 30% and trading beneath key technical indicators

Palantir Technologies (PLTR) experienced a 2.42% uptick during Wednesday’s premarket session, reaching $119.49, following Tuesday’s announcement of strategic partnerships and the revelation of a notable investor in its shareholder registry.

Palantir Technologies Inc., PLTR

The data analytics specialist has struggled throughout 2026, shedding approximately 30% of its value year-to-date, making any bullish developments particularly significant for investors.

The primary catalyst came from a sovereign AI collaboration announcement with Nvidia. This strategic alliance aims to deploy an intelligent infrastructure combining Nvidia’s AI capabilities and Nemotron open-source models within protected, sovereign computing environments—specifically designed for federal government operations and essential infrastructure systems.

The partnership merges Nvidia’s AI platform with Palantir’s comprehensive suite including AIP, Ontology, Foundry, and Apollo technologies.

According to Palantir CEO Alex Karp, this integration will “allow the U.S. government to unleash the full power of LLMs while removing the underlying security risks.” Nvidia’s CEO Jensen Huang characterized the partnership as evidence of “how open models can strengthen America’s leadership in AI.”

Aviation Partnership Receives Boost

The secondary development involved strengthening Palantir’s commercial relationship with Surf Air Mobility. The company pledged additional engineering talent and market development support to accelerate SurfOS evolution, which operates on the AIP and Foundry infrastructure.

Ted Mabrey, Global Head of Commercial at Palantir, stated the platform presents “a clear opportunity to build and define the central operating system for the future of aviation and air mobility.”

Presidential Investment Creates Market Buzz

Contributing to Wednesday’s price action was President Trump’s most recent financial disclosure, submitted to the U.S. Office of Government Ethics on Tuesday.

The documentation reveals Trump maintains a minimum $1 million stake in Palantir, alongside positions exceeding $5 million each in Apple and Nvidia. The complete filing discloses 418 publicly traded equity holdings.

While not representing a dominant portfolio allocation, having a sitting U.S. president publicly identified as an investor typically generates market interest.

Regarding operational performance, Palantir delivered Q1 revenue of $1.63 billion, exceeding analyst consensus estimates of $1.54 billion. The organization maintains profitability, carries zero debt, and continues producing robust free cash flow.

Nonetheless, technical indicators paint a challenging picture. PLTR currently trades 6.7% beneath its 20-day moving average, 11.8% below its 50-day average, and 24.6% under its 200-day moving average. A bearish death cross pattern—occurring when the 50-day SMA drops below the 200-day—materialized in February.

‘Big Short’ investor Michael Burry maintains a documented short position against PLTR, along with similar bets against Tesla and Nvidia.

Analyst sentiment reflects a Moderate Buy rating overall, though bearish perspectives emphasize valuation concerns and potential vulnerabilities related to specific U.K. government contracts.

Both the presidential disclosure and Nvidia partnership were documented Tuesday. PLTR traded at $119.49 during Wednesday’s premarket hours, representing a 2.42% advance.

That transition has also reshaped the Ethereum Foundation itself.

Earlier this year, the foundation published a renewed mandate emphasizing Ethereum’s core values: including credible neutrality, self-sovereignty and open infrastructure, while reducing its involvement in some implementation-focused initiatives. Combined with ongoing budget constraints, the shift has resulted in restructuring across the organization.

Dietrichs views those changes less as a crisis than an overdue evolution. “It’s more a transition period,” he said. “Ethereum is now much more intentionally, proactively reorienting itself to be ready for this new time period.”

Filling in the gaps

But as the turmoil started to unveil itself at the EF, many have started to wonder whether EthLabs would replace it. Dietrichs sees that rather than competing with the foundation, EthLabs intends to complement it. “We’re deliberately positioning ourselves to fill the gaps that the Ethereum Foundation now deliberately leaves,” Dietrichs said. “We’re not trying to create a competing vision for Ethereum.”

Those gaps, he argues, center on adoption-oriented engineering work, like improving Ethereum’s scalability, strengthening layer-1 performance, advancing interoperability, and identifying the technical barriers preventing broader institutional use.

“The gap we see is this more practical, adoption-oriented work, making Ethereum, practically useful for the real world,” he said. EthLabs plans to continue work its founders previously led within the foundation, including layer-1 scaling research, while expanding into areas like interoperability and engagement with financial institutions exploring blockchain infrastructure.

Alt season is the phase when altcoins outrun Bitcoin and portfolios go vertical. Traders have waited more than 260 days for the latest one. Here is what it is, how to measure it, and why it keeps failing to show up.

Alt season is the crypto market’s most anticipated and most argued-about phase. It is the stretch of a cycle when the thousands of coins that are not Bitcoin suddenly outrun it, and portfolios that spent months going nowhere go vertical. Traders wait for it, debate whether it has started, and often miss it. As of mid-2026, the wait has stretched past 260 days since the last confirmed alt season, long enough that some question whether the phenomenon still works the way it used to. This guide explains what alt season actually is, how it is measured, the rotation that drives it, and, most usefully right now, why it keeps failing to arrive.

What alt season is

An altcoin is any cryptocurrency other than Bitcoin, from large names like Ethereum, Solana, and XRP down to thousands of small tokens. Alt season is the phase of a market cycle when these altcoins, as a group, significantly outperform Bitcoin over a sustained stretch, typically weeks to a few months. During one, it is common for many altcoins to double or triple while Bitcoin moves sideways or rises more slowly, and the best-performing names can post gains of several hundred percent.

The defining feature is relative performance, not just rising prices. Altcoins can go up while Bitcoin also goes up; what makes it an alt season is that they go up more. Capital that had concentrated in Bitcoin spreads outward into the rest of the market, lifting a broad range of tokens and shifting attention, liquidity, and speculation toward new narratives and projects. It is the part of the cycle that produces the outsized returns crypto is famous for, and also the sharpest reversals when it ends.

Alt season is the counterpart to Bitcoin season, the phase when Bitcoin leads and altcoins lag. The market cycles between the two, and knowing which phase you are in is one of the most useful pieces of context a crypto participant can have, because the same portfolio behaves very differently depending on which is in force.

The Altcoin Season Index

The most-cited way to judge the phase is the Altcoin Season Index, a tool that turns the question into a single number. It measures how many of the top 100 altcoins, excluding stablecoins, have outperformed Bitcoin over the previous 90 days, and expresses that as a score from 0 to 100. The thresholds are simple: a reading above 75 signals a confirmed alt season, meaning at least three quarters of the leading altcoins beat Bitcoin over the window. A reading below 25 signals Bitcoin season, where altcoins are broadly lagging. Anything between 25 and 75 is a mixed or neutral market where no clear rotation has taken hold.

As of mid-2026, the index sits around 43, up sharply from June lows near 11 to 12 but still well short of the 75 needed to confirm rotation. That reading tells a precise story: altcoins have gained some strength off the bottom, with more of them starting to beat Bitcoin, but the market remains in neutral territory, leaning toward Bitcoin, not in an alt season. The jump from the low teens to the low 40s shows early signs of life without confirmation.

The index has one important weakness that every user should understand. It is built on a trailing 90-day window, which makes it a lagging, reactionary measure. By the time it climbs above 75 and confirms an alt season, much of the move has already happened, so the confirmation arrives after the best entry points have passed. The index is excellent for describing where the market has been and poor at predicting where it is going next.

Bitcoin dominance and the rotation

The companion metric is Bitcoin dominance, often written BTC.D, which is Bitcoin’s share of the total crypto market capitalization. When dominance is high, Bitcoin holds most of the market’s value; when it falls, value is shifting into altcoins. Traders watch dominance closely because a sustained decline is one of the clearest signs that capital is rotating out of Bitcoin and into the rest of the market, the essence of an alt season.

In mid-2026, Bitcoin dominance sits in the mid-to-high 50s, and analysts have flagged a sustained break below 55%, and ideally lower, as the threshold that would signal a real, broad rotation. Above that level, Bitcoin is still absorbing the market’s capital, and altcoins struggle to get sustained traction. The mechanism links dominance to the index: falling dominance means altcoins are gaining share, which shows up as more of them outperforming Bitcoin, which lifts the Altcoin Season Index. The two metrics describe the same rotation from different angles.

The reason dominance matters so much is that it captures the flow of money, not just price. An altcoin can rise in dollar terms while Bitcoin rises faster, in which case dominance climbs and it is still Bitcoin season despite green candles everywhere. Only when altcoins outpace Bitcoin does dominance fall and rotation begin. That is why seasoned traders watch dominance alongside price: it strips out the illusion that a rising market is automatically an alt season.

The four phases of the cycle

Alt season does not appear at random; it tends to arrive at a specific point in a repeating cycle with four rough phases. The first is accumulation, when prices stabilize near the bottom of a downturn and early buyers quietly build positions while sentiment is still poor. The second is the Bitcoin-led rally, when fresh capital enters the market and flows first into Bitcoin, the primary on-ramp, pushing it up and often to new highs while altcoins lag.

The third phase is where alt season lives. After Bitcoin rallies hard and then consolidates, moving sideways, holders who have made gains start looking for higher returns elsewhere and rotate capital into altcoins. This rotation is usually sequential instead of simultaneous: money moves first into large-cap alts like Ethereum, then into mid-caps, and finally into small-cap and speculative tokens as risk appetite grows. The fourth phase is the top and unwind, when euphoria peaks, the last speculative money piles into the smallest and riskiest coins, and the cycle eventually reverses into a downturn.

Understanding this sequence explains why alt season has a prerequisite that is often missed: it typically follows a Bitcoin rally to new highs and a consolidation. Without Bitcoin first leading and then pausing, there is no pool of Bitcoin gains to rotate, and no stable backdrop for capital to move out along the risk curve. The phase is not just a mood; it is a specific stage that depends on what came before it.

Why alt season keeps not arriving in 2026

This is the question on every trader’s mind, and the answer is a convergence of factors instead of a single cause. The first is the most basic: alt season usually follows a Bitcoin rally to new highs and a consolidation, and in 2026 Bitcoin has done the opposite. It sits far below its record, in a bearish, drawn-out drawdown, so the precondition of a fresh Bitcoin high that seeds rotation has simply not been met. There are no large Bitcoin gains sitting around waiting to rotate into alts when Bitcoin itself is down.

The second factor is dominance. Bitcoin dominance has stayed elevated in the mid-to-high 50s, above the threshold analysts see as necessary for broad rotation, which means capital keeps concentrating in Bitcoin instead of spreading out. The third, and the most structurally interesting, is the ETF wall. Spot Bitcoin exchange-traded funds have pulled enormous institutional capital into Bitcoin through regulated products, but that money is largely confined to Bitcoin. Unlike the retail flows of past cycles, which moved freely from Bitcoin into thousands of altcoins, institutional capital that enters through a Bitcoin ETF tends to stay in Bitcoin, because those investors gain crypto exposure through the fund and do not rotate down the risk curve into individual tokens. The channel that once carried money from Bitcoin into alts is partly blocked.

There is a fourth factor: selectivity. Even where rotation is happening, it is narrative-driven and concentrated instead of broad. Institutional participation has made the market more discerning, so money managers favor altcoins with clear fundamentals, regulatory standing, and liquidity, while thousands of microcap tokens with no product and no revenue are left behind. The result is that even partial rotations lift a handful of sectors, real-world assets, AI infrastructure, blue-chip DeFi, instead of the whole market. A rising tide that once floated every boat now floats a chosen few, which is why the broad, everything-pumps alt season of past cycles keeps failing to materialize.

Historical alt seasons

The past shows what a real alt season looks like, and how the forces behind them change. The first major one ran through 2017 and into early 2018, driven by the initial coin offering boom. Hundreds of new projects raised money by issuing tokens directly to retail investors, flooding the market with new assets and speculators, and Bitcoin dominance collapsed from around 86% in late 2017 to under 40% at the start of 2018 as money poured into altcoins. It ended in a deep, prolonged bear market that erased most of the gains.

The second ran through 2020 and 2021, powered by different narratives: decentralized finance protocols, non-fungible tokens, new layer-one blockchains, and eventually meme coins. Capital rotated from Bitcoin into DeFi, then NFTs, then competing smart-contract chains, producing enormous gains across sectors. Institutional investors began entering crypto during this cycle, making the market larger but also beginning the shift toward the selectivity now visible in 2026.

The contrast between those cycles and the present is the whole lesson. Both past alt seasons ran on free-flowing retail capital that moved easily from Bitcoin into a wide field of tokens. The 2026 market has more institutional money, more regulation, and the ETF wall, all of which channel capital differently. The historical pattern is not broken, but the plumbing has changed, which is why the same triggers produce a weaker and more selective response than they once did.

The conditions that would trigger one

If alt season is late instead of dead, what would actually bring it? Analysts point to a set of conditions that, when several align, have historically preceded rotation within a quarter. The first and most important is Bitcoin making a new high and then consolidating, which creates both the gains and the stable backdrop that seed rotation. Until Bitcoin recovers and leads, the sequence cannot begin.

The second is a sustained break in Bitcoin dominance below the mid-50s, confirming that capital is genuinely leaving Bitcoin for alts instead of just lifting the whole market together. The third is expanding liquidity, often from central-bank rate cuts, because looser financial conditions push investors toward higher-risk, higher-beta assets, and altcoins are the highest-beta assets in crypto. The fourth is the Altcoin Season Index sustaining a move above roughly 40 to 50 with momentum, showing that outperformance is broadening instead of flickering.

The practical approach that follows from this is to watch the conditions converge instead of guessing a date. When three or more are present at once, the odds of rotation rise sharply. Until then, the index sitting in neutral is telling you plainly that this is not yet alt season, and the traders who override that signal to get in early are usually the ones left holding underperforming tokens while Bitcoin does the work.

The traps to avoid

Alt season is where fortunes are made and lost, and the losses usually come from two predictable mistakes. The first is chasing it late. Because the index is reactionary, by the time it confirms an alt season above 75, the largest and easiest gains have already happened, and entering then means buying near the top of a fast-moving, overextended market. The window is typically two to five months, and the last stretch is the most dangerous, when the smallest and riskiest coins spike and then collapse hardest.

The second mistake is rotating prematurely, moving fully into altcoins before Bitcoin has confirmed a new high and led the cycle. Every past alt season was preceded by Bitcoin leading first, so rotating early means holding depreciating altcoins while Bitcoin outperforms, the opposite of the intended trade. The index sitting in Bitcoin season or neutral is an explicit signal that the rotation has not started, and ignoring it to position early is a common and expensive error.

The deeper trap is treating alt season as a guaranteed event rather than a probability. It is not an on-off switch that must flip in every cycle; it is a phase that depends on conditions, and those conditions can fail to line up, as 2026 shows. The disciplined approach is to track the index and dominance daily, watch for the trigger conditions to converge, and add altcoin exposure selectively and gradually once the signals confirm, instead of betting the portfolio on a rotation that the data has not yet endorsed.

Where the money rotates first

If a rotation does begin, it does not lift every token at once, and knowing the order helps separate a real broadening from a narrow bounce. The sequence tends to follow the risk curve. Capital leaves Bitcoin first for the largest, most liquid altcoin, historically Ethereum, because it is the safest step out along the curve and the easiest for large money to enter. A sustained move in the ETH/BTC ratio is often read as the opening signal that rotation has started at the top of the market.

From there, money tends to move down the size ladder. After large-caps like Ethereum absorb the first wave, capital flows into mid-cap tokens with proven products and liquidity, then finally into small-cap and speculative names as risk appetite grows and traders chase higher percentage gains. This is why the late stage of an alt season is the wildest: the smallest and least proven coins move last and hardest, which is also why they fall the fastest when the phase ends. The order is a rough gauge of how far a rotation has traveled.

Sector leadership matters as much as size. In any given cycle, rotation concentrates in a few narratives instead of spreading evenly, and the leading sectors change from cycle to cycle. In 2026 the candidates most often cited include layer-two scaling networks, real-world asset tokenization, blockchain infrastructure for artificial intelligence, and blue-chip decentralized finance. Meme coins typically peak last and crash hardest, which makes their surge a late-stage signal more than an early one. Watching which sectors lead tells you what the market is actually rewarding, not just that alts are moving.

The selectivity point returns here with force. Because institutional capital favors tokens with fundamentals, liquidity, and regulatory standing, a modern rotation can lift a handful of quality names while thousands of microcaps stay flat, which looks nothing like the everything-pumps seasons of the past. A trader watching only a favorite microcap might conclude alt season never came, while large-cap and sector leaders quietly outperformed. Judging rotation by the leaders and the index, not by one held bag, gives a truer read.

The practical use of all this is sequencing your own attention. Track the ETH/BTC ratio for the first sign that money is stepping out of Bitcoin, watch whether strength broadens from large-caps into mid-caps as confirmation, and treat a frenzy in the smallest coins as a late-cycle warning instead of an invitation. Rotation is a process with an order, and reading that order is more useful than waiting for a single index number to flip.

Frequently Asked Questions

Disclaimer: This article is for information and educational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency prices are highly volatile, and market cycles are unpredictable. Nothing here is a recommendation to buy or sell any asset. Always do your own research and consider consulting a licensed professional before making financial decisions. Figures such as the Altcoin Season Index and Bitcoin dominance are accurate as of July 1, 2026, and will change.