Data from Blockchain Center shows that 75% of the top 50 cryptocurrencies outperformed Bitcoin over the past 90 days. A similar trend appears in the CoinGlass Altcoin Season Index, which climbed to 80 points on September 15.
Bitcoin dominance has dropped 6.03% over the last six months, sliding to 57.8% — a shift that has historically marked the start of strong altcoin rallies.
Shane Molidor, founder of Forgd, explained that investors have begun rebalancing portfolios toward “alternative” coins after Bitcoin dominated the early stages of the cycle.
The Fed’s Rate Cut
The first key driver of this cycle is the Federal Reserve’s decision to cut its benchmark rate by 25 basis points on September 17. Markets had fully anticipated the move, seeing it as a liquidity boost that could channel more capital into risk assets, including altcoins.
Kyle Schass, founder of MV Global, added that while the expected 25 bps cut is already priced in, a larger-than-expected move in the future “could trigger an even more powerful and surprising rally.”
Corporate Reserves
Molidor also pointed to rising corporate appetite for alternative assets. Layer-2 tokens and ecosystem coins with strong TVL, trading volumes, and revenue models are increasingly seen as candidates for corporate treasuries.
“By issuing debt and acquiring crypto assets, companies create a reflexive flywheel that reinforces upward price dynamics,” said Derive’s head of research, Sean Dawson.
Annabelle Huang, founder of Altius, argued that public companies will continue accumulating crypto — but only in “quality altcoins with sustainable income, proven economics, and healthy user metrics.” Molidor named Ethereum, Solana, and BNB as examples.
Bloomberg ETF analyst James Seyffart recently echoed this view, calling it the beginning of a “corporate altcoin season,” where growth will favor only those tokens added to large-company reserves.
Altcoin ETFs
The third catalyst is regulatory clarity. SEC Commissioner Paul Atkins recently said that most tokens should not be classified as securities and called for unified rules across the crypto market.
Currently, the regulator is reviewing more than 90 spot ETF applications tied to altcoins such as Solana, XRP, and Litecoin. Many expect that approval of these products would act as a major bullish driver for the underlying cryptocurrencies. Bitfinex analysts, however, noted that a sustainable altcoin rally is unlikely until new ETF products receive the green light.
As previously covered by FORECK.INFO, the Federal Reserve’s decision to lower its benchmark rate to 4.25% has already shaped market sentiment, setting the stage for how crypto assets respond in the weeks ahead.