The cryptocurrency market is currently experiencing Bitcoin Season, according to the Altcoin Season Index reading of 40. This metric reveals that fewer than 25% of altcoins have outperformed Bitcoin’s price gains over the past 90 days.
Bitcoin Season occurs when Bitcoin dominates market performance, a pattern often fueled by factors like pre-halving anticipation and broader market uncertainty. During such phases, investors typically favor Bitcoin’s relative stability amid volatility, causing capital rotation away from alternative cryptocurrencies.
Traders can optimize strategies by concentrating on Bitcoin accumulation, rebalancing portfolios to reduce altcoin exposure, and researching promising altcoin projects positioned for future market cycles. This approach helps navigate capital concentration trends while preparing for potential shifts.
For an Altcoin Season to commence—marked by comprehensive altcoin strength—at least 75% of the top 100 altcoins must outperform Bitcoin during a 90-day period. Historically, this transition follows peaks in Bitcoin dominance, improving macroeconomic conditions, or the emergence of compelling altcoin-specific narratives driving renewed investor interest.