Key Insights
- The changes in SEC leadership and the resurgence of regulatory sentiment in the crypto markets will result in increased participation in a broader segment of altcoins.
- The decline of Bitcoin’s dominance indicates early-stage capital rotation, typically observed during growing periods of altseason.
- The Altcoin Market Capitalisation is holding onto an important trendline level of support, thereby maintaining structural integrity and stability.
Altseason Momentum Builds Following SEC Exit and Market Signals
The resignation of SEC Commissioner Caroline Crenshaw has generated significant interest in the digital asset sector. This event has come at a time of transitioning regulatory standards for the industry, and the increasing strength of altcoins and technical indicators suggesting that traders might be entering into an Altseason in 2026.
Regulatory Change Draws Market Attention
As reported by CryptosRus, Caroline Crenshaw has officially departed from the U.S. Securities and Exchange Commission (SEC).
While working for the SEC, she had opposed the approval process for spot Bitcoin exchange-traded funds (ETFs).
She generally followed a more stringent application of securities law in her duties as a member of the SEC.
Market analysts believe her departure is indicative of broader changes within the regulatory environment. Recently, the SEC approved spot Bitcoin ETFs, which indicates a less rigid approach to regulating digital entertainment, and these approvals have prompted traders to reconsider their risk tolerances as we enter what is viewed as an “early altseason.
Altcoin Market Structure Shows Renewed Strength
BlockNews has published its weekly TOTAL3 chart, demonstrating a rebound from a long-term support line that has been rising since 2023 for all altcoins.
An increase in total market cap, minus that of Bitcoin and Ethereum, has recently crossed the critical amount of $820 billion.
There have been numerous historical examples of the same indicator, indicating a strong accumulation phase in the market.
A significant rally in the altcoin market has come at each retest of the same indicator.
Analysts are very positive about the outlook for altseason if the market can hold above its current established weekly support zones on the TOTAL3 chart.
The altcoin market holds a rising weekly trendline, signalling accumulation and potential breakout toward the $1 trillion resistance zone.(source;X)
OTHERS/BTC Ratio Mirrors Previous Cycles
Midas pointed out that the OTHERS/ BTC Monthly Ratio behaviour has followed a similar pattern to the same behaviours seen in 2017 and 2021.
Each of those cycles witnessed a long-term downward price action, a pattern of forming higher lows followed by rapid periods of expansion heavily favoured to the altcoins.
Currently, the ratio is trading at a very close proximity to the long term trend-line Support of approximately 0.10.
The previous expansionary moves were initiated by forming a similar base; this structure is considered an early sign from a trader’s perspective, and therefore not confirmation of the possibility of a developing altseason.
OTHERS/BTC historical cycles suggest another altseason expansion, projecting strong upside
if long-term trendline support holds. (source: X)
Bitcoin Dominance Signals Capital Rotation
Bitcoin dominance has recently broken its long-term support level of 60 %, according to CryptoKaleo. Previously, after each of the previous halving cycles, there has been a breakdown of bitcoin dominance, which has typically seen an increase in Ethereum and other altcoins as well.
Historically, as Bitcoin dominance has continued to decline, there has also been an increased number of altcoins that have begun to participate in the market. Analysts note that bitcoin dominance tends to work out very slowly.
However, with the current regulatory and market structure developments, we are in a stage that resembles prior cycles of all-season.
Bitcoin dominance repeats history: a post-halving breakdown, a failed retest, and a structural shift pointing toward an altseason expansion. (source: X)
Final Thoughts
The departure of Caroline Crenshaw has left the SEC without an established critic at a time when cryptocurrency regulation is undergoing huge change that will affect many different areas.
At the same time, indicators demonstrate that while Bitcoin is losing dominance, altcoins are positioned well to take advantage of the current market conditions.
