The Altcoin Season Index serves as a vital indicator for traders and analysts, helping them decipher whether the market favours altcoins or Bitcoin. Let’s explore what the current index tells us and its implications for your crypto portfolio.
Unveiling the Altcoin Season Index
Consider the Altcoin Season Index as a market wind vane, measuring altcoin strength relative to Bitcoin. Currently at 43, this number indicates Bitcoin's dominance. The index assesses the top 100 cryptocurrencies on CoinMarketCap, excluding stablecoins and wrapped tokens. Altcoin season begins when 75% outperform Bitcoin over the last 90 days. Below 25%, it's Bitcoin season.
Why Bitcoin Dominance Now
Bitcoin’s dominance is influenced by several factors: - Investors turn to more established assets like Bitcoin during flight to safety. - Institutional investors often prefer Bitcoin for its liquidity and infrastructure. - Positive narratives about Bitcoin can bolster its position. - After altcoin rallies, a correction often redirects funds to Bitcoin.
Adapting Investments to the Bitcoin Season
During Bitcoin season, consider revisiting your portfolio allocation to increase Bitcoin holdings. Focus on fundamentally strong cryptos. Utilize dollar-cost averaging into Bitcoin to mitigate risks. Monitor the index for changes and use strategic trading rather than panic selling.
The Altcoin Season Index is an essential tool for navigating crypto markets, indicating whether Bitcoin or altcoins lead the trend, guiding timely investment strategy adjustments.
