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CoinMarketCap’s Altcoin Season Index rose 2 points to 28 compared to yesterday’s level. While the increase in the index indicates a limited improvement in altcoins’ performance against Bitcoin, the current outlook is still far from an altcoin season.
CoinMarketCap’s Altcoin Season Index compares the performance of the top 100 cryptocurrencies by market capitalization to Bitcoin over the past 90 days. Stablecoins and wrapped tokens are excluded from the calculation. The index stands out as one of the indicators used to assess the extent to which market capital is shifting from Bitcoin to altcoins.
For an altcoin season to be considered to have begun, at least 75% of the top 100 cryptocurrencies need to outperform Bitcoin over the past 90 days. If this condition is not met, the market is considered to be in a Bitcoin season.
The index approaching 100 indicates market conditions more aligned with an altcoin season, while lower levels reveal Bitcoin outperforming altcoins. The current index value of 28 shows that altcoins haven’t established a broad dominance.
Recently, Bitcoin’s price movements and market dominance in the cryptocurrency market continue to be decisive in determining the overall performance of altcoins. Changes in investor risk appetite, liquidity conditions, and upward or downward movements in Bitcoin can directly affect the performance of altcoins.
While the 2-point daily rise in the index is a positive development in terms of the relative performance of altcoins, it alone does not confirm a trend reversal. For an altcoin season to materialize, the index needs to advance to higher levels in the coming period, and a large portion of the coins in the top 100 need to surpass Bitcoin.
Market participants are closely monitoring Bitcoin dominance and the price performance of major altcoins, as well as the index, to understand whether capital flows into altcoins are strengthening.
*This is not investment advice.
Source: cryptonews.net