The Altcoin Season Index currently stands at 25, indicating that the cryptocurrency market is in a phase of Bitcoin dominance. This value is significant for investors.
What is the Altcoin Season Index and Its Current Value
The Altcoin Season Index, tracked by CoinMarketCap, shows whether the market favors Bitcoin or other cryptocurrencies, known as altcoins. The current score of 25 points towards Bitcoin Season, where fewer than 25% of the top 100 altcoins have outperformed Bitcoin over the last 90 days.
What Bitcoin Season Looks Like
Bitcoin Season is characterized by its market capitalization dominating the crypto market. At this time, investors focus on Bitcoin as a more stable asset. During periods of uncertainty, investors tend to shift their funds into Bitcoin, seen as less volatile compared to altcoins, which may be underperforming.
What Can Trigger Altcoin Season
For the Altcoin Season Index to start rising towards the 75 level, it is necessary for altcoins to begin consistently outperforming Bitcoin. This can occur through stability in Bitcoin prices, an increased risk appetite, or capital rotation from Bitcoin into promising altcoins.
The Altcoin Season Index at 25 signals that the market is currently in Bitcoin Season. Understanding the phases of cryptocurrency markets can help investors adjust their expectations and strategies.
