 
 
A rising variety of market analysts consider the long-awaited altcoin season could lastly arrive in January 2026, with new information suggesting a shift in liquidity circumstances.
Based on Bull Idea, the OTHERS dominance chart, which tracks the market share of altcoins excluding Bitcoin and Ethereum, is hovering close to the identical base zone seen forward of earlier explosive cycles in 2017 and 2020.
The MACD on OTHERS dominance is flattening, whereas the RSI sits close to historic lows. In previous cycles, related setups preceded multi-year expansions in altcoin dominance, suggesting the present setting displays accumulation somewhat than extra.
The present setup aligns with a historic sample wherein altcoins backside first, then outperform as liquidity circumstances enhance.
In late 2019, when the Federal Reserve ended quantitative tightening and commenced buying $60 billion in T-bills month-to-month, altcoin dominance bottomed and trended greater by way of early 2022.
 
Over the previous 4 years, altcoins underperformed regardless of Bitcoin’s restoration, primarily as a result of liquidity was being drained. However analysts consider issues at the moment are altering, for the reason that Fed has resumed liquidity injections, with roughly $40 billion monthly in T-bill purchases.
Markets are additionally forward-looking. Discussions round company tax cuts, potential $2,000 dividend-style checks, and the prospect of a extra growth-focused Fed Chair are strengthening expectations for extra liquidity.
Moreso, small-cap equities are confirming this shift, with the Russell 2000 lately hitting new highs. This transfer traditionally precedes stronger altcoin efficiency.
Regardless of these indicators, present sentiment stays muted. CoinMarketCap’s Altcoin Season Index is at 19 out of 100, firmly in Bitcoin season territory and nicely under its yearly excessive of 78.
On the intense facet, belongings like ASTE, ZEC, and MERL posted triple-digit beneficial properties over the previous 90 days.
Bull Idea argues that altcoins are probably close to a long-term backside versus Bitcoin. In a base state of affairs, OTHERS’ dominance returning to 12-13% might gasoline a strong altcoin cycle.
In a stronger liquidity-driven case, a transfer towards 18-20% in 2026 might mark the most important altcoin season so far.
