The altcoin index serves as a crucial indicator of market sentiment, allowing investors to adjust their portfolios accordingly. Currently, the index is close to 25, suggesting a potential new phase for altcoins.
What is the Altcoin Index?
The altcoin index measures current market sentiment, ranging from 0 to 100. Values of 0-25 indicate Bitcoin dominance, while 75-100 signal an altcoin season. The value is based on the performance of the top 50 altcoins over the past 90 days, excluding stablecoins.
Current Market Situation
As of now, the altcoin index is nearing 25, suggesting a potential end to the Bitcoin dominance phase. This value is rising as BTC appears to break below key support levels over the last three weeks following its recent all-time highs.
Historical Performance of Altcoins
Historically, when the altcoin index approaches 25, market sentiment tends to shift. In early 2021, the index surged above 90 when altcoins dominated the market. Conversely, during the 2022-2023 bear market, the index remained below 25, indicating Bitcoin dominance.
If history repeats, the market may witness another altcoin season in the coming weeks, leading to increased demand and volatility in the sector.
