Bitcoin Hits $89,500 Amid Wall Street Plunge: Is Altcoin Season Coming?
While US stock indexes plummeted and the US dollar weakened sharply, Bitcoin made a strong breakthrough, surpassing the $89,500 mark - its highest level in weeks. This development is attracting special attention from global investors and raising the question: Is Altcoin season (Altseason) approaching?
Bitcoin Soars Amid Financial Market Storm
In the context of traditional markets falling into chaos, Bitcoin has emerged as a new "safe haven". Bitcoin price has skyrocketed to $88,400 following new political tensions in the US, especially after former President Donald Trump publicly criticized Federal Reserve Chairman Jerome Powell. Along with that, Trump's new tariff threats have made investors more worried, triggering a wave of capital withdrawal from the stock market.
The S&P 500 fell 2.4% last week, bringing its year-to-date decline to 12%. The Nasdaq, which is sensitive to interest rate fluctuations, is down nearly 18% year-to-date in 2025. Meanwhile, the US dollar has slid to its lowest level since 2022, reflecting rising uncertainty.
Gold and Bitcoin: Two New Safe Havens
Amid the deep market slump, uncorrelated assets like gold and Bitcoin have begun to play their role as safe havens. Gold hit a new all-time high of $3,500 per ounce, while Bitcoin quickly broke through technical resistance levels, reaching $89,500 in just a few days.
According to data from Glassnode, Bitcoin futures open interest has surged by $2.4 billion in just 36 hours. At the same time, Bitcoin spot volume also nearly tripled – from $2.9 billion to $8.0 billion, indicating growing speculative and investment interest.
Bitcoin Dominance Hits 63.6%
With the recent surge, Bitcoin’s dominance rate over the entire market has jumped to 63.6% – its highest level in months. However, this is also the time when analysts are starting to worry about the possibility of a reversal and a shift of money to altcoins.
Julio Moreno, Head of Research at CryptoQuant, said that Bitcoin is approaching a strong technical resistance level of $91,000 – $92,000. “Unless there is a major catalyst that changes the market sentiment, Bitcoin may face a technical correction in the short term,” he said.
Is Altcoin Season Coming?
Despite BTC’s current dominance, many traders are predicting that an altcoin wave could be brewing behind it. Popular trader @Astronomer believes that once Bitcoin reaches a short-term top, its dominance will start to wane, paving the way for altcoins to start a new growth cycle.
“Usually, when BTC rallies and stabilizes, investors will start rotating into altcoins with higher potential returns. This could happen from late Q2, when BTC’s rally slows down,” he shared.
Bitcoin’s bright spot amid financial market gloom
The fact that Bitcoin is rallying while stocks are plunging and the USD is weakening has once again cemented its role as a decentralized asset that can hedge against macro risks. With confidence in traditional financial instruments wavering, many investors have turned to safe havens – and Bitcoin is standing out more than ever.
Conclusion
The current developments show a major shift in investor behavior: from viewing Bitcoin as a speculative instrument to now seeing it as a hedge against market risks. While technical factors suggest BTC is facing short-term resistance, an altcoin season may be brewing behind the scenes.
Will Bitcoin continue to lead the market or will it cede the stage to altcoins? The near future will tell, but one thing is certain: cryptocurrencies are increasingly becoming the center of global attention.