Glassnode Signals Altcoin Season as Crypto Rally Broadens
Glassnode’s Altcoin Cycle Signal has shifted from Bitcoin Season to Altcoin Season, indicating that gains are spreading across a broader section of the crypto market. The change followed Bitcoin’s breakout above $85,000, with BTC trading near $85,500 on September 22 after reaching more than $87,300 in the previous session.
Ethereum traded around $2,730, while XRP rose about 6%, Solana gained roughly 4.5% and Dogecoin posted a double-digit 24-hour increase. Bitcoin dominance remained high at about 59.1%, suggesting that BTC still controls most market capitalisation despite stronger short-term altcoin returns.
The rally was supported by almost $1 billion in US spot Bitcoin ETF inflows and heavy short liquidations. Market-wide open interest rose 7.6%, while approximately $648 million in short positions were liquidated. Bullish social-media discussion reached its highest level since 2024 as Bitcoin moved above $87,000.
However, CoinMarketCap’s Altcoin Season Index stood at 49, below its 75-point threshold. The difference reflects contrasting methodologies: Glassnode’s signal captures recent relative-performance improvements, while CoinMarketCap measures the share of the top 100 tokens that outperformed Bitcoin over 90 days. Traders may view the Altcoin Season signal as an early rotation indicator, but broader confirmation remains pending.
Bullish
The market impact is bullish, but the signal is not yet definitive. Bitcoin’s move above $85,000, nearly $1 billion in spot ETF inflows and extensive short liquidations indicate strong demand and forced buying. Gains in ETH, XRP, SOL and DOGE also suggest that risk appetite is broadening beyond Bitcoin, which can support higher trading volume and continued short-term momentum.
Glassnode’s Altcoin Season signal is important because similar rotation indicators have often appeared during the early stages of broader crypto rallies. When Bitcoin rises first and market capital later flows into large-cap altcoins, traders frequently increase exposure to higher-beta assets. However, these rotations can reverse quickly if Bitcoin dominance remains elevated or BTC experiences a sharp pullback.
The main caution is that CoinMarketCap’s 90-day Altcoin Season Index is only 49, well below its 75-point confirmation threshold. This means the recent gains have not erased the period in which Bitcoin outperformed many altcoins. Elevated open interest and large short liquidations may also increase volatility, as crowded long positions could become vulnerable to a reversal.
In the short term, the news supports momentum trading in major altcoins, but traders should monitor BTC support levels, funding rates, ETF flows, dominance and follow-through across mid-cap tokens. Over the longer term, sustained breadth and a rise in the CoinMarketCap index would provide stronger evidence of a durable Altcoin Season rather than a brief relief rally.