The era of classic altcoin seasons, when most cryptocurrencies surged together after Bitcoin rallies—may be coming to an end, according to Bitwise Investment Director Matt Hougan.
In a recent interview, Hougan suggested that the crypto market is entering a different phase where only certain assets will benefit from capital inflows.
For years, traders relied on a familiar pattern. Bitcoin would reach a new all-time high, capital would rotate into Ethereum, and then liquidity would flow into smaller altcoins across the market.
Hougan believes that cycle may no longer dominate the industry.
He said he does not expect to see a rising tide lift all boats: from Bitcoin to Ethereum, then to DeFi, and eventually to NFTs featuring images of rocks.
Instead, he expects investors to increasingly differentiate between projects, favoring assets supported by strong fundamentals and real economic activity.
Bitcoin Shows Signs of Forming a Bottom
Hougan also commented on Bitcoin’s recent price action after the asset fell to around $60,000 in February. According to him, Bitcoin may already be forming a market bottom.
At the time of publication, Bitcoin was trading near $70,532, based on CoinCodex data.
However, the debate around altcoin season remains active across the industry.
In November 2025, market analyst Matthew Hyland encouraged traders not to lose confidence in altcoins. He noted that Bitcoin dominance had shown bearish signals for several weeks, a trend that historically precedes capital rotating into alternative cryptocurrencies.
BitMEX co-founder Arthur Hayes offered a very different perspective.
Hayes said in December that altcoin season is effectively always happening and that investors who believe it is not underway are likely holding the wrong assets.
Market Sentiment Around Altcoins Is Cooling
Recent data suggests investor attention may currently be shifting toward Bitcoin.
Crypto analytics platform Santiment reported on March 4 that mentions of altcoins across social media dropped to a two-year low. The decline indicates that traders are increasingly focused on Bitcoin rather than the broader altcoin market.
Some analysts see this trend as a warning sign for weaker projects. Others believe it could signal a temporary lull before capital returns to select altcoins.
Overall, Hougan’s view reflects a broader shift in crypto market thinking. Instead of buying almost any altcoin during a market rotation, investors may increasingly focus on projects with strong utility, sustainable economics, and clear adoption.
If that shift continues, the next altcoin cycle could look very different from the explosive market-wide rallies seen in previous years.
