Bitwise Asset Management’s Chief Investment Officer Matt Hougan stated that a traditional altcoin season is over, with a potential non-traditional season replacing it.
Hougan suggested a fundamental shift in how capital could flow through the market, one driven by fundamentals rather than speculative rotation.
Traditional Altcoin Season Is Over: Bitwise CIO
In an interview with Paul Barron, Hogan drew a line between past cycles and what he expects next. Previous altcoin seasons followed a script.
Capital rotated from Bitcoin (BTC) to Ethereum (ETH) to decentralized finance (DeFi) to increasingly speculative assets, including, as Hogan put it, “NFT pictures of rocks.” He predicts that the altcoin season will be unconventional, focusing on assets that have practical real-world use and traction.
“I don’t think we’ll see the sort of rising tide lifts all buckets,” he said. “I think we’ll see a non-traditional altcoin season.”
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Hogan added that the market may “rerate” certain DeFi tokens, which are currently valued at billions of dollars and have substantial business operations. He emphasized that the altcoin season will be more differentiated compared to previous cycles.
In October, Bitget CEO Gracy Chen forecasted that an altcoin season is unlikely to arrive in 2026. Others have suggested that altseason already arrived, just not where most were watching. Former BCG associate Alana Levin argued that the cycle played out in crypto equities in 2025 rather than crypto tokens directly.
Will Altseason Take Off Amid Market Challenges?
Hougan’s outlook comes at a time when the broader market remains in a downtrend, with investors adopting a risk-off sentiment. Recently, CryptoRank identified three core reasons why an altcoin season has not arrived.
The report pointed to capital dilution, the launch of low-float, high-FDV tokens, and increasing competition from perpetual futures and prediction markets.
Despite these challenges, some see potential for a reversal. Santiment highlighted that when social volume and interest in altcoins reach extreme lows, it often marks the beginning of rallies.
On the technical front, Merlijn The Trader observed a classic head-and-shoulders pattern on Bitcoin dominance’s (BTC.D) chart. He pointed out that the left shoulder and head are already established. In addition, the right shoulder is currently forming.
“The neckline is everything. If it breaks…liquidity rotates. And that’s when altcoin season begins,” he said.
Amid a broader market downturn, the question of whether an altcoin season will arrive and who stands to benefit remains an open one for now.
