Bitcoin ($BTC) Recovery, Alt Season ‘Premature’… Binance Emphasizes Need for Strong Catalyst

Bitcoin (BTC) and Ethereum (ETH) have reversed market sentiment by showing a recovery amid geopolitical instability, but analysts suggest that the altcoin market's strength is insufficient to lead to the so-called 'alt season'. According to the weekly report recently released by the world's largest virtual asset exchange Binance, Bitcoin successfully staged a strong rebound from last week's downturn, reaffirming its position as a 'risk asset'. This recovery is significant as it coincided with easing geopolitical tensions and simultaneous gains in traditional financial markets. Bitcoin's price dropped to $98,000 (approximately 136.22 million won) early in the week but recovered to $107,000 (approximately 148.73 million won) over the weekend. In contrast, Ethereum experienced a more significant decline with a weaker rebound. ETH, which fell to $2,130 (approximately 2.96 million won) last Monday, closed at $2,480 (approximately 3.44 million won), still recording a negative performance for the week. The report reiterated that Ethereum still lacks the credibility to be considered a 'hedge instrument'. Binance also noted, "While it's uncertain whether the post-weekend rebound signifies Bitcoin's continued superiority, the initial recovery is generating expectations," and analyzed that "Bitcoin's market dominance remains around 66%". Meanwhile, market expectations for an altcoin surge are gradually cooling down. Binance explained that for an 'alt season' to fully materialize within the cryptocurrency market, Bitcoin's upward trend needs to pause at a certain level, and funds must move to small and medium-sized altcoins. However, new themes in this cycle such as meme coins, BitcoinFi, and Decentralized Physical Infrastructure Networks (DePIN) are not considered influential enough to trigger a clear market transition. Particularly, while past alt seasons were driven by clear industry trends like ICO, DeFi, and Layer 2 scaling technologies, the current cycle sees project saturation actually dispersing investment inflows. Binance emphasized that "currently, narratives or fund rotation alone are insufficient to move the altcoin market, and a powerful catalyst is needed" to herald a new trend. Consequently, while Bitcoin is solidifying its market position as 'digital gold' amidst volatility, altcoin investors are still waiting for a starting signal.