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 underperforming in comparison to 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. Although Ethereum (ETH) has shown some recent outperformance, there has been a lack of follow-through, particularly in the smart contract platform (SCP) sector, which continues to lag behind Bitcoin. The altseason index further confirms this downward trend, with only 18% of the top 100 assets (excluding stablecoins) outperforming BTC.

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

Coutts emphasized the importance of monitoring key indicators, such as a moving average bullish cross on the price chart and a reversal on the altseason index sub-chart, as potential signals of a shift in market dynamics.

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