5 Reasons 2021 Is the “Last Altcoin Season” & Bitcoin’s Dominance in Crypto

Jakarta, Pintu News – The period of 2021 became a phenomenal moment for altcoins, when crypto assets other than Bitcoin (BTC) experienced a remarkable performance that has not been repeated since. Bitcoin’s increasing dominance and changing market mechanisms were noticed as the main factors that differentiated crypto dynamics after 2021. This article summarizes five reasons why 2021 is considered the last altcoin season based on the latest crypto market analysis.

1. Altcoin Season 2021: Amazing Growth Ratio

In 2021, the altcoin market showed significant growth when the total altcoin capitalization (TOTAL3) sharply outperformed Bitcoin. The altcoin capitalization increased so much faster than the Bitcoin market that the Altcoin Season Index peaked during that period. This factor indicates strong capital rotation from BTC to other crypto assets.

This phenomenon differs from subsequent trends in that altcoins have not performed similarly in the subsequent long term. This marks 2021 as the point in the crypto cycle where investor interest in altcoins peaked.

Also Read: 7 BTC Facts Predicted to Bottom at $37,500 in 2026 – Latest Crypto Market Analysis

2. Spike in Funding Rates Signals Volatility

According to a recent crypto analyst report, funding rates for altcoins increased significantly after 2021, indicating excessive leveraged longs. This increase in funding rates is thought to reflect excessive risk accumulation on altcoins, as the market becomes more sensitive to volatile price movements.

Since leveraged longs can trigger liquidation streaks when prices are sideways or falling, this situation leads to higher volatility and makes altcoins more vulnerable to market pressures. This phenomenon is in contrast to the bullish phase in 2021 which was driven by widespread demand for altcoins.

3. Bitcoin’s increasing dominance puts pressure on altcoins

Over the past few years, Bitcoin’s (BTC.D) dominance has shown a strong uptrend after the altcoin season 2021 phase. Bitcoin’s increasing market share relative to the entire crypto market signals that investors’ capital is increasingly gravitating back to BTC rather than to other crypto assets.

This increased dominance of Bitcoin structurally focuses liquidity on BTC, making capital flows to altcoins more limited. This change makes the altcoin season no longer as strong as the 2021 period, as most capital remains concentrated on Bitcoin as the main asset.

4. Trader Behavior Change and Leverage Risk

After 2021, the dynamics of the crypto market changed with the increased participation of derivatives and leveraged utility traders. The surge in funding rates and overcrowded longs suggest that market participants are likely to take high risk on altcoin positions.

However, when prices go sideways or down, the liquidation pressure due to these leveraged positions contributes to sharper fluctuations and holds back the growth rate of altcoins. This means that a big altcoin season like 2021 is becoming increasingly difficult due to the market structure that is now more dominated by Bitcoin.

5. Crypto Market Scenario After 2021

Despite 2021 being the peak of the altcoin season, the structure of the crypto market has changed rapidly since then. Bitcoin’s strong dominance and the market’s sensitivity to leverage make it harder for capital rotation into altcoins to take place at scale.

However, the analyst also observed that market conditions could change if Bitcoin’s dominance drops and altcoin capitalization shows new momentum. In this case, a new altcoin season could occur, but the factors supporting it would have to be stronger than in 2021.

Also Read: 5 Veteran Analyst Insights Say 2026 Could Be Peak Gold & Silver

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Ritika Gupta/AMBCrypto. 4 years of Bitcoin winning – Here’s why 2021 was the last alt season. Accessed January 3, 2026.