- Trade tensions tied to U.S. tariff threats coincided with renewed weakness across the altcoin market.
- Altcoin Season Index falls to 39, showing Bitcoin outperforming most altcoins in 2026.
- Altcoin Season Index surged above 75 in late 2025 before returning to Bitcoin dominance.
The Altcoin season declined at the start of 2026 as renewed trade tensions between the United States and Europe coincided with a shift in crypto market leadership back toward Bitcoin.
The pullback followed comments from U.S. President Donald Trump, who said over the weekend that a 10% tariff would be imposed on goods shipped to the United States from Denmark, Norway, Sweden, the United Kingdom, France, Germany, the Netherlands, and Finland starting Feb. 1.
The tariffs would apply unless those countries agreed to allow the United States to seize Greenland. Trump added that the tariff rate would rise to 25% on June 1 if no agreement were reached for what he described as the “complete and total purchase” of the island from Denmark.
European leaders responded by expressing possible retaliation. Officials said the European Union could deploy its anti-coercion instrument, a legal framework designed to counter economic pressure and trade threats from foreign governments. The tool, often referred to as the bloc’s “big bazooka,” allows the EU to impose countermeasures if negotiations fail.
Altcoin Leadership Fades After Late-2025 Surge
Against that backdrop, market data shows a major shift away from altcoins. The Altcoin Season Index reported an altcoin season in late 2025 when readings surged above the 75 mark. That period followed months of declines earlier in the year, when the index remained deep in Bitcoin-dominant territory.
The rally, however, did not hold. By October, the index had slipped back below 50, signaling the end of broad-based altcoin outperformance. As 2026 began, the reading climbed back above 50 only to fall back to 39, signaling a market environment that favored Bitcoin over alternative assets.
Related: 3 Key Signals Pointing Toward an Impending Altcoin Season
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Source: https://coinedition.com/altcoins-season-slide-in-early-2026-as-bitcoin-reclaims-market-lead/
