Cryptocurrency markets are firmly entrenched in Bitcoin Season, with the Altcoin Season Index registering a score of 38. This metric indicates that Bitcoin (BTC) is significantly outperforming the majority of altcoins.
The index score, below the key threshold of 45, signifies that fewer than 25% of leading altcoins have yielded higher returns than Bitcoin over the preceding 90-day period. This dominance is primarily attributed to substantial institutional investment inflows, particularly into spot Bitcoin ETFs, alongside ongoing macroeconomic uncertainties. These factors are driving investors towards Bitcoin, perceived by many as a more established store of value, over riskier alternative cryptocurrencies.
Analysts generally advise investors to prioritize Bitcoin exposure and consider established blue-chip altcoins like Ethereum (ETH), Solana (SOL), and BNB during this phase. Employing Dollar-Cost Averaging (DCA) strategies is also recommended to navigate inherent market volatility.
However, a potential shift back towards Altcoin Season could be triggered by stabilization in Bitcoin’s price, a notable increase in network activity and innovation on platforms like Ethereum, or the emergence of compelling new market narratives centered around themes such as Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), or Artificial Intelligence (AI) related tokens.
The Altcoin Season Index calculation utilizes the trailing 90-day performance data of the top 100 cryptocurrencies, deliberately excluding stablecoins and wrapped tokens, and compares them directly against Bitcoin’s performance.