Adam Back, CEO of Blockstream, has publicly declared that the altcoin season is over and advised investors to rotate their portfolios into Bitcoin (BTC) and Bitcoin-focused treasury stocks. Back highlights that Bitcoin dominance recently reached a new cycle high of 66%, while the Altcoin Season Index dropped to a two-year low, signaling a broad weakening among altcoins.
He encourages investors holding altcoins to "dump ALTs into BTC or BTC treasuries," pointing to the superior performance of Bitcoin treasury companies compared to individual altcoins. For example, the Solana-focused DeFi Development Corporation (DFDV) saw a remarkable 2,800% year-to-date gain, vastly outperforming major altcoins such as Solana (SOL) and Ethereum (ETH), which experienced declines of 23% and 32% respectively over the same period.
Back’s call to rotate funds comes amidst a significant increase in institutional adoption, with over 240 publicly traded companies now holding Bitcoin as a treasury asset—up from 124 earlier this year—and collectively owning about 3.96% of Bitcoin’s total supply. These companies employ innovative strategies like convertible notes and equity offerings to accumulate Bitcoin and increase Bitcoin per share.
Amid growing adoption, certain Bitcoin treasury firms have traded at steep premiums, raising concerns about overvaluation, particularly noted in firms like Metaplanet. Meanwhile, some altcoins continue to attract selective institutional interest, highlighted by Nasdaq-listed Interactive Strength’s plan to raise $500 million to build a treasury for Fetch.ai (FET) tokens.
Notably, governmental adoption is gaining ground with Texas becoming the first U.S. state to establish a publicly funded Bitcoin reserve, separate from its state treasury. This move contrasts with other states that have recently halted cryptocurrency legislation amid volatility concerns.
Overall, Back’s message is clear: the era of heavy altcoin speculation has ended, and the focus should now be on Bitcoin and Bitcoin treasury firms as more sustainable and institutionally backed investment vehicles.