Real Vision analyst Jamie Coutts is cautioning that the altcoin market is currently experiencing a bearish trend following a robust six-month period of growth. The former Bloomberg analyst shared his insights with his 18,400 followers on the social media platform X, highlighting that most altcoins are now being overshadowed by Bitcoin (BTC).

Coutts provided an update on the current state of altcoins, noting that many crypto funds are heavily invested in alts and are not seeing the returns they had hoped for, despite a strong performance from Q4 2023 to Q1 2024. While Ethereum (ETH) saw some recent gains, there has been a lack of sustained momentum, particularly within the smart contract platform (SCP) sector, which continues to trail behind Bitcoin. The altseason index also reflects this downward trend, with only 18% of the top 100 assets (excluding stablecoins) outperforming BTC.

Despite the current bearish sentiment, Coutts remains optimistic about the future of altcoins, predicting a potential surge later this year. He suggests that the altcoin season index, which measures the profitability of digital assets relative to BTC, could soon turn bullish for alts in the coming months.

Looking ahead, Coutts believes that a turnaround in the altcoin market is imminent, pointing to improving liquidity at the margins, including recent central bank cuts. He notes that a bullish signal for alts could be indicated by a moving average bullish cross on the top chart and a reversal on the altseason index sub-chart.

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