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History Is Rhyming: Altseason Indicators Mirror Pre-2021 Crypto Setup

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR:

  • Altseason indicator shows BTC and ETH losing dominance over the broader market. 
  • Weekly RSI divergence signals fading momentum and market compression. 
  • Market structure mirrors pre-2021 altseason patterns, hinting at rotation. 
  • Selective altcoins with strong utility may lead the next crypto expansion.

The altseason indicator update shows early signs that the crypto market may rotate away from BTC and ETH dominance toward altcoins. Historical patterns suggest momentum is weakening, and price structure is compressing ahead of potential altcoin expansion.

Market Structure Suggests Altcoin Pressure

The altseason indicator tracks the dominance of total stablecoins, BTC, and ETH relative to the broader market. It identifies when capital shifts from major coins to altcoins.

Since January, the price has moved sideways within a tight consolidation range. This mirrors the market structure seen before the 2021 altseason, where BTC and ETH dominance first formed a clear distribution zone.

Recently, the price pushed into resistance levels, suggesting a potential bull trap. The weekly RSI shows divergence from the price, signaling a gradual weakening of buying momentum.

Momentum divergence indicates the market may be coiling for a structural move. Such compression phases can last weeks, yet historically they precede rapid rotations into altcoins.

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The current setup reflects a pause between distribution and rotation. During this phase, price may appear stagnant, but capital quietly prepares for the next move.

Historical comparisons show that similar patterns led to the largest altcoin expansions of the last cycle. Dominance breakdowns often trigger rapid, aggressive capital flows into select tokens.

Market compression also makes timing uncertain. RSI and price may remain in a tight range for several weeks, yet the structural pressure continues to build.

A fading RSI often precedes volatility spikes in a classic pre-altseason environment, where leading altcoins outperform before widespread rotation.

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Tokens with strong fundamentals and relative strength against BTC and ETH often separate from weaker assets early.

Strategic Focus for the Next Altseason

If BTC and ETH dominance break down, historical trends indicate capital may rapidly move into selected altcoins. The 2021 dominance collapses caused significant gains for top-performing tokens.

Not all altcoins are likely to participate equally. Market maturity ensures capital favors projects with real utility, robust tokenomics, and strong social ecosystems.

Traders should monitor relative strength metrics. Projects outperforming BTC and ETH often lead early in rotation phases. This selective approach maximizes gains while reducing exposure to weaker assets.

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Price compression, momentum divergence, and structural similarities to past cycles suggest the market is near a decision point. Early movers may benefit significantly.

Patience is critical during this stage. Investors focusing on quality projects with strong fundamentals may profit when capital rotates rapidly into leading altcoins.

 

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Crypto World

Bitcoin to $1 million? Bitwise CIO says it could happen under these conditions

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Bitcoin could reach $1 million per coin if it captures a meaningful share of the global store-of-value market, according to a new memo from Matt Hougan, chief investment officer at Bitwise Asset Management.

Summary

  • Bitwise CIO Matt Hougan says Bitcoin could reach $1 million if it captures about 17% of the global store-of-value market.
  • The analysis frames Bitcoin as a competitor to gold, which currently dominates the store-of-value sector.
  • Increasing adoption through spot Bitcoin ETFs and institutional investment could help drive Bitcoin’s market share higher.

Bitcoin’s path to $1M runs through gold’s market: Bitwise CIO

In the memo titled “How Bitcoin Gets to $1 Million,” Hougan argues that Bitcoin’s (BTC) long-term valuation depends largely on its ability to compete with traditional store-of-value assets such as gold and government bonds.

Hougan estimates the global store-of-value market at roughly $38 trillion, with Bitcoin currently accounting for only a small portion of that total.

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The largest share is held by gold, which he describes as Bitcoin’s most direct competitor.

According to the analysis, if the store-of-value market grows to around $120 trillion over the next decade and Bitcoin captures roughly 17% of that market, the cryptocurrency could reach a valuation close to $1 million per coin.

Hougan argues that such a scenario is not as far-fetched as it once seemed, citing the rapid institutional adoption of Bitcoin in recent years.

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A key factor driving that adoption has been the launch of spot Bitcoin exchange-traded funds in the United States, which have opened the asset class to pension funds, financial advisors and other institutional investors that previously had limited access to crypto markets.

Hougan said these developments have helped position Bitcoin as a legitimate macro asset alongside traditional stores of value. As institutional allocations increase and global demand for non-sovereign assets grows, Bitcoin could gradually gain market share within the broader store-of-value ecosystem.

“As I see it, the base case—that the store-of-value market will continue to grow as it has, and bitcoin will continue to gain market share as it has—leads you to much, much higher prices than we have today,” Hougan wrote.

The memo stops short of predicting an exact timeline for the $1 million milestone, but suggests the target could be achievable within roughly a decade if Bitcoin adoption continues to expand and the broader market for store-of-value assets grows.

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Crypto Bill Can Advance, but Lobbyists Will Be Unhappy: Senator

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Crypto Bill Can Advance, but Lobbyists Will Be Unhappy: Senator

A US Senate Democrat says crypto and banking lobbies will both have to accept compromises amid a new proposal to move the crypto market structure bill forward.

Senator Angela Alsobrooks, a key Democrat on the Senate Banking Committee, said at an American Bankers Association event on Tuesday that she and Republican Senator Thom Tillis are working on a compromise proposal, but crypto and banking interests can’t let “perfect be the enemy of good.”

“All of us will probably walk away just a little bit unhappy,” she said. “What we don’t want is to have an unregulated system — to have crypto not regulated at all — and not to have the guardrails to allow a situation where we will have deposit flight.”

Banking groups, including the American Bankers Association, have pushed for the Senate to include a ban on third-party stablecoin yield payments in crypto market structure legislation pending in the Senate.

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Senator Angela Alsobrooks speaking on stage at an American Bankers Association conference. Source: American Bankers Association

The groups argue that the payments are a deposit flight risk for bank accounts that could destabilize the banking system and that the ban would close a perceived loophole in the GENIUS Act, which banned stablecoin issuers from offering yield on their tokens.

Stablecoin yield payments are a popular way for crypto exchanges to entice customers, and crypto lobby groups have fought against the proposal to ban them.

The fight has stalled the crypto bill from moving forward, which outlines how market regulators would police crypto.

Senator Alsobrooks said that in negotiations for the GENIUS Act, lawmakers knew they’d have to “revisit the issue around interest and yield,” adding that crypto market structure legislation must address the issue of stablecoin yields so they don’t end up undermining the banking sector.

Related: Donald Trump takes swipe at banks over stalled crypto bill

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“If it quacks like a duck and looks like a duck, it is a duck,” she said. “Making sure that we are not allowing bank-like products without bank-like protections — this is what we know is really important.”

Americans want stablecoin yield limits if banks at risk

Alsobrooks’ comments come as the American Bankers Association shared a survey finding that 42% of respondents agreed that Congress should ban stablecoin yields if there is any risk that it could reduce the amount of money available to banks.

The survey, conducted by Morning Consult on behalf of the lobby group and polling a national sample of 4,456 adults, also found that 84% agreed that a business providing bank-like services, like a savings product, should be “held to the same standards for consumer protection that banks are.”

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

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