Altcoin Season: Decoding the Bitcoin Market’s Dominant Shift

Key Points

1. The Altcoin Season Index, tracked by CoinMarketCap, measures whether the top 100 cryptocurrencies (excluding stablecoins and wrapped tokens) outperform Bitcoin over 90 days; a score below 25 indicates a Bitcoin Season.

2. A Bitcoin Season occurs when 25% or fewer altcoins outperform Bitcoin, often due to Bitcoin attracting most new capital and altcoins lagging in momentum.

3. The current index reading of 26 suggests a strong Bitcoin Season, meaning most altcoins are underperforming, and investors should prioritize Bitcoin or stablecoins.

4. The Altcoin Index serves as a market sentiment barometer, helping investors navigate volatility by providing a simplified metric of altcoin performance relative to Bitcoin.

5. During Bitcoin Season, investors should focus on Bitcoin and strong altcoin projects, while preparing for potential shifts by monitoring the index for signs of an upcoming Altcoin Season.