The Altcoin Season Index shows the current state of the cryptocurrency market, indicating Bitcoin's dominance.
What is the Altcoin Season Index?
The Altcoin Season Index is a metric that tracks Bitcoin's price performance against the top 100 altcoins. It excludes stablecoins to focus on volatile assets.
Key aspects of the index include: * **Metric Source:** The index is tracked by CoinMarketCap. * **Scope:** It analyzes the performance of the top 100 cryptocurrencies. * **Exclusions:** Stablecoins and wrapped tokens are excluded for a more accurate reflection of altcoin performance. * **Timeframe:** Performance is considered over the past 90 days.
Decoding the Index: The Significance of a Score of 24
The current index score of 24 points to a phase known as **Bitcoin Season**, meaning that less than 25% of altcoins have outperformed Bitcoin over the last 90 days.
Strategies for Investing During the Current Bitcoin Season
During a Bitcoin season, investors may consider strategies such as: 1. **Focus on Bitcoin:** Increasing BTC allocation in your portfolio may be sensible during this period. 2. **Research Altcoins:** Look for promising projects even when the average altcoins underperform. 3. **Increase Stablecoin Holdings:** This may help preserve capital amidst uncertainty.
The index reading of 24 confirms Bitcoin's dominance. This presents both challenges and opportunities for strategic cryptocurrency investing.
