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    Altcoin Season Coming To An End, CryptoQuant Data Suggests

    Story Highlights
    • CryptoQuant data shows altcoin rotation fading as traders shift focus from risky tokens.

    • Ethereum leads the correction, dropping over 6% as whales reduce positions before market dip.

    • Altcoin Season Index fell from 88 to 65, showing fewer altcoins outperforming Bitcoin recently.

    After weeks of strong gains, the crypto market is slowing down, with major altcoins like Ethereum, XRP, Solana, and Dogecoin seeing sharp declines. Indicating that traders and investors start shifting focus from aggressive altcoin plays to safer positions.ย 

    On-chain data provider CryptoQuant suggests that the recent altcoin rotation may be coming to an end, marking a more cautious phase in the market.

    Altcoin Rotation Comes to an End

    According to CryptoQuant, the altcoin rotation that dominated September is now fading. Earlier this month traders had been rotating out of Bitcoin into altcoins seeking faster gains. 

    This trend was seen in rising trading volumes, falling Bitcoin dominance, and several new highs across mid-cap and meme coins. 

    Ethereum led the early rally but has now corrected over 6%, trading below $4,200, extending its pullback from recent highs. On-chain data also shows large holders reducing risk. One whale sold $72.88 million in Ethereum just before the market dip.

    whale sold $72,880,000 in ETH

    Additionally, over 420,000 ETH moved off exchanges last week, indicating that while selling pressure is easing, investors are rotating out of riskier positions and securing profits.

    Why This Time Feels Different

    Back in June, many feared a large correction might shake the market. But CryptoQuant pointed out at the time that there were no significant changes in Ethereum withdrawal data, which suggested stability. That argument helped calm nerves and the market avoided a steep fall.

    Now, the situation looks different. The altcoin rotation has lasted longer than expected, and the pattern of capital moving away from Ethereum has become clearer.

    Altcoin Season Index Declines

    The sign of dropping altcoin rotation can clearly be seen through struggle altcoin season index. After soaring to 88 earlier this month, the index has now dropped to 65.ย 

    This decline indicates that fewer altcoins are outperforming Bitcoin, signaling the end of the aggressive altcoin season and a shift toward more cautious, selective trading.

    What Next for Altcoin Market?

    As Q4 about to begins, both traders and institutions appear to be prioritizing safety over chasing quick gains.

    Even Bitcoin is finding it hard to reach its previous highs, showing that the market is cautious. Any big price rise will likely depend on the Fed lowering interest rates, but for now, the recovery is still uncertain.

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    FAQs

    Is the altcoin season over?

    Yes, data indicates the aggressive altcoin season is ending as capital rotates to safer positions and fewer altcoins are outperforming Bitcoin.

    Why are altcoins like Ethereum and Solana crashing?

    Major altcoins are correcting after strong gains as investors secure profits and reduce risk, shifting focus away from aggressive plays.

    What is the future of altcoins in Q4 2025?

    The Q4 outlook is cautious. Traders are prioritizing safety over quick gains, with a sustained recovery likely needing catalysts like lower interest rates.

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