Altcoin Season: Unlocking Opportunities Amidst Bitcoin’s Dominance

Key Points

1. The Altcoin Season Index, provided by CoinMarketCap, measures the performance of the top 100 cryptocurrencies (excluding stablecoins and wrapped tokens) against Bitcoin over the past 90 days.

2. An index score of 37 falls within the 'Bitcoin Season' category, meaning 25% or fewer of the top 100 altcoins have outperformed Bitcoin in the last 90 days.

3. Historical trends show that altcoin seasons, such as those in 2017 and early 2021, are marked by significant altcoin gains driven by narratives like DeFi and NFTs, while Bitcoin seasons see liquidity drawn away from altcoins.

4. Investors can prepare for future altcoin seasons by monitoring Bitcoin dominance and market indicators, as the crypto market cycles between Bitcoin and altcoin dominance.

5. The index serves as a tool for understanding market phases, helping investors make informed decisions without predicting exact timing for shifts between Bitcoin and altcoin seasons.