The Altcoin Season Index provides essential data about which part of the cryptocurrency market is active. Current analysis shows that Bitcoin is prevailing at this moment.
What is the Altcoin Season Index?
The Altcoin Season Index, tracked by platforms like CoinMarketCap, is a tool for evaluating market sentiment. It shows how altcoins are performing relative to Bitcoin over a set period. The index is based on:
* **Top 100 Coins:** focus on the performance of the top 100 cryptocurrencies by market capitalization. * **90-Day Performance:** considers how these coins have fared over the past 90 days. * **Relative to Bitcoin:** compares the performance of altcoins concerning Bitcoin. * **Exclusions:** does not consider stablecoins and wrapped tokens, whose price movements do not reflect speculative trends.
Difference Between Altcoin Season and Bitcoin Season
The Altcoin Season Index defines two phases in the cryptocurrency market cycle:
* **Altcoin Season (75 – 100):** more than 75% of altcoins outperform Bitcoin. * **Bitcoin Season (1 – 25):** 25% or fewer altcoins outperform Bitcoin. * **Transitional Phase (26 – 74):** mixed results on the market, without clear predominance.
Reasons for the Current Low Index Value
As of June 14, 2024, the Altcoin Season Index registered at 27, indicating clear dominance of Bitcoin. Reasons may include:
* **Macroeconomic Uncertainty:** investors tend to turn to safer assets. * **Institutional Flows:** significant investments into Bitcoin via ETFs. * **Post-Halving Dynamics:** Bitcoin may consolidate before capital shifts to altcoins.
The Altcoin Season Index currently indicates strong Bitcoin dominance, but this does not mean that altcoins are not worthy of investment. Current strategies require flexibility, and conditions for an Altcoin Season may change.
