The Altcoin Season Index tracked by CoinMarketCap fell to 38, confirming the ongoing dominance of Bitcoin in the crypto market.
Altcoin Index Drop
The Altcoin Season Index, updated at 00:30 UTC on February 5, showed a one-point drop from the previous day. This indicates the market remains in Bitcoin Season, as altcoins continue to underperform BTC over the past 90 days. The current index at 38 confirms Bitcoin's dominance, though not at extreme levels.
Why is Bitcoin Season Continuing?
1. Bitcoin ETFs attract institutional investors, reducing demand for altcoins. 2. Global economic uncertainty drives traders to choose BTC as a safe asset, avoiding riskier altcoins. 3. Historically, altcoin seasons follow Bitcoin's major price movements.
Will Altcoin Season Return?
Bullish Case: - If Bitcoin price consolidates, capital could flow into altcoins. - Upcoming Ethereum upgrades may boost ETH and DeFi projects.
Bearish Case: - Continued Bitcoin dominance may delay altcoin breakouts. - Economic instability could keep investors from taking risks.
The Altcoin Index dropping to 38 confirms that Bitcoin Season is ongoing, with BTC maintaining market dominance. Altcoins remain under pressure, but a shift might occur if Bitcoin stabilizes and capital rotates into altcoin projects.
