Crypto traders are growing cautious, with sentiment tilting toward Fear and attention shifting back to large-cap assets like Bitcoin, Ether, and XRP. According to Santiment’s weekend update, investors appear less willing to dive deeper into obscure altcoins, preferring to focus on which of the market’s biggest players might drive the next move upward.
The cooling mood follows weeks of chatter about a possible “altseason,” though analysts are tempering expectations. Bitfinex recently suggested that a true altcoin breakout may not arrive until more crypto ETFs roll out later this year, potentially bringing fresh capital into the space.
The caution is reflected in data. On Sunday, the Crypto Fear & Greed Index registered a “Fear” score of 44, slipping from neutral levels earlier in the week. At the same time, CoinMarketCap’s Altcoin Season Index showed a score of 56 out of 100, a borderline reading that points to mixed performance between altcoins and Bitcoin over the past 90 days.
Traders are split on near-term direction. Daan Crypto Trades sees Bitcoin as “undecisive” and suggested a sweep of monthly lows could trigger panic over losing the $100,000 level. Bitcoin is down over 5% in the past month, while Ether has managed a gain of about 9%. Others, like Rekt Fencer, believe this period could be the final shakeout for altcoins before a rebound, while MN Trading’s Michael van de Poppe argues altcoins remain “extremely undervalued.”
PlanC, a Bitcoin analyst, pushed back against cycle-based expectations, warning that assuming a Q4 peak simply because of past halving cycles lacks statistical weight.
In short, the market is stuck between two currents: caution that favors large caps, and anticipation of a potential altcoin rotation. Which side wins out may depend on catalysts like ETF approvals, macro policy shifts, or a decisive technical breakout from Bitcoin.
