Bitcoin’s Big Win: 2021 Was the Last Altcoin Season!

by

The 2025 cycle has introduced some notable market divergences, like a cat chasing a laser and a man trying to explain his feelings. 😼

Historically, Bitcoin [BTC] has seen strong rallies after each halving, like a well-fed cat after a nap-until 2025, when it closed the year down 6%. 🐱

A similar divergence is showing up in altcoins. TOTAL3 (market cap ex- BTC and ETH) has printed its fourth straight red year versus Bitcoin, like a broken clock that’s only right once a decade. 🕒

That divergence naturally points towards BTC’s growing market influence, which is about as subtle as a bull in a china shop. 🐂

Technically, this isn’t a stretch. Bitcoin dominance (BTC.D) has put in four consecutive uptrends, climbing from roughly 40% in 2022 to above 60% in 2025. That’s a solid 100% gain in market cap, roughly $900 billion added. 🧮

Notably, over the same period, total market cap grew to $1.11 trillion, meaning nearly 80% of that new capital landed in BTC, highlighting its growing influence. In this context, is an altseason really a thing of the past? Or just a ghost that’s finally been exorcised? 👻

The 2021 rally in retrospect – Key altcoin market signals

Looking back, the 2021 cycle was a textbook altcoin season, with altcoins dancing in the streets while Bitcoin sipped tea. 🍵

On the 12-month chart, BTC’s market cap closed the year up 64%, breaking through the historic $1 trillion-milestone. And yet, TOTAL3 (market cap ex-BTC and ETH) completely outpaced it, rallying a staggering 541%. Like a toddler with a cookie jar and no sense of restraint. 🍪

The result? The Altcoin Season Index peaked, signaling a full-blown altseason, with capital clearly rotating into the broader alt market. Since then, however, BTC has taken control. The question is – What really changed? Probably the same thing that changes every time: greed, panic, and a few well-timed tweets. 📱

The answer is simple – Altcoin funding rates have spiked. Like a toddler on a sugar rush, they’re bouncing off the walls and crashing into the floor. 🍬

Simply out, leveraged longs are overcrowded, and while that might sound bullish, it’s actually trapped altcoins in a volatile loop. Even a small sideways move can trigger a cascade of liquidations. Like a house of cards in a hurricane. 🌪️

Add rising BTC.D, and alts have become highly vulnerable to sharp swings. In this context, the growing divergence between Bitcoin and alts isn’t a fluke. Instead, it shows why 2021 was probably the last real “altcoin season.” Like a one-time party that everyone forgot to invite anyone to. 🎉

Final Thoughts

  • Altcoin funding rates have spiked, creating overcrowded longs that trap altcoins in a volatile loop. Like a squirrel in a maze with no exit. 🐿️
  • Rising Bitcoin dominance has funneled capital towards BTC, making alts vulnerable and explaining why 2021 was likely the last true “altcoin season.” Like a sunset that’s finally decided to stop pretending it’s morning. ☀️

Read More

2026-01-03 06:26