Altcoin Season Index Drops: Is the Crypto Market Entering a New Era of Bitcoin Dominance?

Key Points

1. The Altcoin Season Index, tracked by CoinMarketCap, measures the 90-day performance of the top 100 coins (excluding stablecoins and wrapped tokens) and currently stands at 36, signaling Bitcoin's dominance.

2. Bitcoin Season occurs when 25% or fewer of the top 100 altcoins outperform Bitcoin over 90 days, reflecting a shift in market trends favoring Bitcoin.

3. Bitcoin often acts as a market bellwether, with capital flowing back into it during uncertain times, strengthening its position relative to altcoins.

4. The crypto market is cyclical, and Bitcoin Season may eventually transition back to Altcoin Season, influenced by factors like Bitcoin price stability or altcoin ecosystem breakthroughs.

5. Monitoring the Altcoin Season Index helps investors make informed decisions by understanding prevailing market trends and potential shifts in dominance between Bitcoin and altcoins.