We are currently observing the onset of Bitcoin Season, according to the Altcoin Season Index, which reads 14. This indicates Bitcoin's significant market dominance.
What is the Altcoin Season Index?
The Altcoin Season Index by CoinMarketCap tracks when altcoins outperform Bitcoin and vice versa. It evaluates the performance of the top 100 cryptocurrencies over 90 days, excluding stablecoins and wrapped tokens. If more than 75% of altcoins outperform Bitcoin, it's Altcoin Season. If less than 25%, it's Bitcoin Season. The current index at 14 signals a Bitcoin Season.
Current State of Bitcoin Dominance
An index value of 14 means fewer than 25% of the top 100 altcoins have outperformed Bitcoin in price growth over the last 90 days. This indicates a strong dominance of Bitcoin in the market, as most altcoins are unable to compete with its rise.
How to Act During Bitcoin Dominance
During Bitcoin Season, consider your portfolio strategy. You might want to rebalance by increasing Bitcoin holdings, especially if you've invested heavily in altcoins. It's also crucial to monitor the index for potential shifts to Altcoin Season. Research Bitcoin fundamentals to understand its long-term value proposition.
The Altcoin Season Index at 14 signals a current Bitcoin Season. It indicates a shift in market dynamics. Understanding these shifts and adjusting your strategy accordingly can help optimize risk and capitalize on potential opportunities.
