The Altcoin Season Index provided by CoinMarketCap serves as a key indicator for understanding the dynamics of the crypto market. Currently, the index indicates we are in 'Bitcoin Season.'
What is the Altcoin Season Index?
The Altcoin Season Index measures the strength of altcoins relative to Bitcoin. It relies on comparing the performance of the top 100 cryptocurrencies over the last 90 days, excluding stablecoins. A reading above 75% indicates an altcoin season, while below 25% signals a Bitcoin season.
Current Reading of the Altcoin Season Index
As of April 17, the Altcoin Season Index stood at 15. This low score confirms Bitcoin's current dominance over the majority of altcoins in the market.
Strategies for Navigating Bitcoin Season
During Bitcoin Season, investors might consider increasing their Bitcoin allocation in their portfolio. However, attention should also be paid to fundamentally strong altcoins. Risk management and monitoring the Altcoin Season Index are crucial components of an effective investment strategy.
The Altcoin Season Index currently indicates Bitcoin's dominance, yet the crypto market is cyclical. Understanding these cycles and utilizing the index will help investors adapt their strategies based on market shifts.
