Glassnode's Altcoin Cycle Signal has flipped from Bitcoin Season to Altcoin Season as gains spread across a broader share of the crypto market following Bitcoin's breakout above $85,000.

Bitcoin traded around $85,500 on September 22 after touching an intraday high above $87,300 in the previous session. Ethereum changed hands near $2,730, XRP gained roughly 6%, Solana rose about 4.5%, and Dogecoin posted a double-digit 24-hour advance.

Despite the altcoin strength, Bitcoin dominance remained near 59%, meaning BTC still controls a large share of total crypto capitalization even as altcoins record stronger short-term returns.

The rotation followed a Bitcoin rally driven by nearly $1 billion of U.S. spot ETF inflows and heavy short liquidations. Spot ETFs hold Bitcoin directly, giving traditional investors exposure to the asset through brokerage accounts. Short liquidations occur when rising prices force leveraged bearish positions to close, a process that mechanically adds buy orders to the market. Bullish social discussion reached its highest level since 2024 as BTC broke above $87,000, while market-wide open interest increased 7.6% alongside roughly $648 million in short liquidations.

Glassnode Signal Moves Into Altcoin Season

Glassnode's indicator changed regime after relative performance improved across the altcoin market. The signal compares Bitcoin with a broad basket of crypto assets to identify periods when participation shifts away from BTC-dominated returns.

August produced a different market structure, with Bitcoin accounting for a larger share of gains while many altcoins failed to keep pace. September's latest advance has included simultaneous gains across Ethereum, XRP, Solana, Dogecoin and other large-cap assets.

Bitcoin's own seven-day range stretched from roughly $75,000 to more than $87,300, giving altcoins a rising BTC market rather than a backdrop in which their relative performance improves simply because Bitcoin is falling.

The latest U.S. economic data also point to continued expansion in manufacturing. The Institute for Supply Management's August Manufacturing PMI registered 54.6, marking an eighth consecutive month above the 50 expansion threshold. New Orders came in at 53.7 and Production at 58.3.

CoinMarketCap Index Remains Below Altseason Threshold

CoinMarketCap's Altcoin Season Index stood at 49 on September 22, well below its formal 75-point threshold for declaring Altcoin Season. The index measures how many of the top 100 eligible cryptocurrencies have outperformed Bitcoin during the previous 90 days, with stablecoins and asset-backed tokens excluded. A reading of 75 means at least three quarters of the group have beaten BTC over that period.

The difference between the two indicators stems from their methodologies and measurement windows. Glassnode's cycle signal has already registered the recent improvement in relative altcoin performance, while CoinMarketCap's 90-day measure still contains weeks when Bitcoin led the market. For readers weighing cycle calls, the gap is a reminder that an altcoin-season label depends on both the methodology and the lookback window behind a given indicator.

Bitcoin dominance was approximately 59.1% on September 22, compared with 11.5% for Ethereum and 29.4% for the rest of the market. CoinMarketCap's Altcoin Season Index was still 42 three days earlier, before climbing into the low-50s as the latest rally spread across large-cap tokens. The index's path relative to its 75-point threshold, alongside Bitcoin's dominance share, offers a concrete way to track whether participation continues to broaden in the sessions ahead.

Source: Crypto Adventure