The Altcoin Season Index, a key metric for tracking altcoin performance relative to Bitcoin, has dropped to 35 as of November 16, 2024, according to CoinMarketCap. This highlights Bitcoin's continued dominance.
Understanding the Altcoin Season Index
The Altcoin Season Index measures whether the cryptocurrency market favors altcoins or Bitcoin based on the last 90 days' performance. Below 25 indicates Bitcoin Season, while above 75 suggests Altcoin Season. With a current score of 35, the index signals Bitcoin Season.
Why the Index Dropped
The three-point decline in the Altcoin Season Index highlights several ongoing market dynamics. Bitcoin's strong performance attracts major investor focus and capital. Many altcoins show weaker price action compared to Bitcoin. Additionally, recent inflows into Bitcoin ETFs have sidelined altcoins.
What This Means for the Market
The drop in the index indicates that investors continue to focus on Bitcoin. This could affect investment strategies, making Bitcoin more preferable due to its stability and leadership. Altcoins may remain subdued until Bitcoin consolidates.
The drop in the Altcoin Season Index to 35 underlines Bitcoin's prevailing dominance in the market. While this poses challenges for altcoins, Bitcoin continues to fortify its leading position.
