Altcoin Season is Dead, Non-Traditional Cycles Taking Over Says Bitwise CIO

The traditional concept of “altseason” may no longer apply to modern crypto markets, according to the chief investment officer of Bitwise Asset Management, who argues that new market structures are changing how capital flows into digital assets.

Speaking on the Paul Barron Show, Bitwise CIO Matt Hougan said the familiar cycle in which altcoins surge dramatically after Bitcoin rallies is evolving into something far less predictable. According to Hougan, structural changes in global markets and crypto infrastructure are altering how investors allocate capital.

The CIO’s comments come after a weekend of unusual market activity triggered by geopolitical developments. After U.S. President Donald Trump announced military strikes against Iran, traditional financial markets were closed across the United States, Europe, and Asia. With conventional trading venues unavailable, many traders turned to decentralized finance platforms to react immediately.

Hougan also argued that the ability to trade continuously represents a structural advantage for crypto infrastructure. Once hedge funds and macro traders gain exposure to these systems, they are unlikely to abandon them. The CIO compared the shift to the growth of exchange-traded funds after the Global Financial Crisis in 2008, when ETFs proved more flexible than traditional mutual funds during extreme market volatility.

Although trading volumes on decentralized platforms are small compared to major exchanges, Hougan described the growth trajectory as exponential. Early activity may seem minor, but each successive wave of institutional adoption could significantly increase liquidity as more firms onboard the infrastructure.

Now, Hougan also highlighted a shift in investment tied to artificial intelligence, warning that investors who limit their exposure to public equities may miss much of the growth generated by private AI companies. To address that gap, he suggested that investors allocate roughly 5% of their portfolios to private markets.

Meanwhile, CoinMarketCap data suggests that the market is entering a consolidation phase rather than the usual explosive altcoin cycle. Bitcoin fell 1.21% to $69,806 after rejecting $70,500 resistance, triggering $87M liquidations. Moreover, the Altcoin Season Index remains 36/100, signaling Bitcoin dominance even as some tokens deliver decent 90-day gains.