PMI Breaks 50, Altcoins Ready to Rise? Altcoin Season 2026 Signals Begin to Emerge

Jakarta, Pintu News – The decline in altcoin market capitalization began to slow down in the first week of March, despite various geopolitical developments that had a negative impact. In addition, the latest release of the PMI index has again raised hopes that altcoins have a chance to recover in the near future.

However, the potential recovery could face major obstacles as the proportion of altcoins trading around all-time lows continues to rise.

Why PMI Reports Can Affect Capital Flows into the Altcoin Market?

More constructive macroeconomic signals have just emerged and reignited market optimism. The US ISM Manufacturing PMI recorded staying above the 50 threshold for the second consecutive month.

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The ISM Manufacturing PMI represents the results of a survey of purchasing managers about their business conditions. This indicator is often used to assess whether the US manufacturing sector is in an expansion or contraction phase.

In February 2026, the PMI stood at 52.4. Although slightly lower than January’s 52.6, the figure still exceeded the projection of 51.8.

Based on historical patterns, a rise in the ISM PMI above 50-which is generally interpreted as an economic expansion-often goes hand-in-hand with significant gains in both Bitcoin and altcoins.

Ash Crypto analysts think that when the PMI is above 50, the US economy enters an expansion phase. In this condition, corporate profits tend to increase, household income improves, consumption strengthens, and investors’ risk appetite also rises.

Ash Crypto also stated that if the ISM stays above 50 for the next few months, the “crypto winter” phase could potentially be coming to an end.

Some analysts view the ISM Manufacturing PMI’s persistence above 50 for two consecutive months as an early indication of a new business cycle in the US. Such a macro environment is considered to be more supportive of capital movement into high-risk assets, including crypto.

Analyst Matthew Hyland combined the PMI data with historical models and concluded that altcoin dominance has just confirmed a breakout signal.

The rise in PMI, along with the recovery of the MACD-H indicator on the monthly frame and the breakout of the falling wedge pattern on altcoin dominance, is seen to strengthen the scenario of the altcoin season forming in 2026.

38% of Altcoins Traded Near an All-Time Low

The latest report from CryptoQuant analysts shows that the outlook for altcoins is still rather bleak.

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Darkfost, an analyst at CryptoQuant, said about 38% of altcoins are currently trading near an all-time low. This is the lowest in the current cycle and looks even worse than the period shortly after the FTX collapse.

According to Darkfost, the chart clearly illustrates the current state of altcoins: investors are still cautious and interest in altcoins continues to weaken. However, he adds that when conditions deteriorate to the extreme, it can also open up opportunities.

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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 and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. PMI Holds Above 50 for Two Months: Will Altcoin Market Recover? Accessed on March 4, 2026