Altcoin Season’s Overtime? Bitcoin’s Shadow Hides a Factory Signal

The ISM Manufacturing Index rose to 55.5 in October, up from 54.5 in September, while US manufacturing expanded for the tenth consecutive month, according to a November 2 report. Peter Anthony, founder of The House of Crypto, said the data may provide an economic signal for traders watching Bitcoin dominance and the potential for smaller cryptocurrencies to outperform $BTC.

Anthony has studied the relationship between Bitcoin dominance and the US Institute for Supply Management’s (ISM) Manufacturing Index, which measures activity across American factories. He identified a reading of 58 as a potentially important level, noting that strong manufacturing activity has historically coincided with sharp declines in Bitcoin dominance, when smaller cryptocurrencies began outperforming Bitcoin. “We haven’t seen that happen since 2021.”

The latest Altcoin Season Index remains below the level associated with a broad altcoin rally. Bitcoin also entered November under pressure after a difficult October and ahead of the November 3 US midterm elections, while most smaller cryptocurrencies struggled to sustain meaningful rallies.

Anthony also cited the global artificial intelligence boom as a potential driver of further economic growth, specifically highlighting semiconductor exports from Taiwan and South Korea. South Korea’s semiconductor exports surged 259.4% in October, driven by global demand for AI infrastructure. He said traders monitoring capital flows between blockchain networks, including activity around the Robinhood ecosystem, may identify opportunities before individual tokens rally.

The manufacturing-data relationship is a historical observation rather than a proven trading signal. “I think we could see it sooner rather than later,” Anthony said.