CoinMarketCap’s Altcoin Season Index climbed 2 points to 28, up from yesterday’s reading. Although the increase signals a modest improvement in altcoin performance relative to Bitcoin, the market remains well below the threshold for an altcoin season.
Altcoin Season Index remains firmly in Bitcoin season territory
The CoinMarketCap Altcoin Season Index measures the 90-day performance of the top 100 cryptocurrencies by market capitalization against Bitcoin. Stablecoins and wrapped tokens are excluded from the calculation. The index is widely used to gauge whether capital is shifting from Bitcoin into altcoins.
An altcoin season is considered to have started when at least 75% of the top 100 cryptocurrencies outperform Bitcoin over a 90-day period. If that threshold is not reached, market conditions are classified as a Bitcoin season.
Readings closer to 100 indicate market conditions that are more favorable to altcoins, while lower readings show that Bitcoin is outperforming the broader altcoin market. At 28, the current index indicates that altcoins have not established broad-based dominance.
Bitcoin dominance continues to influence altcoin performance
Bitcoin’s price movements and market dominance remain key factors in determining the overall direction of the cryptocurrency market. Changes in investor risk appetite, liquidity conditions, and Bitcoin’s upward or downward movements can have a direct impact on altcoin performance.
While the index’s 2-point daily increase is positive for altcoins’ relative performance, it does not by itself confirm a trend reversal. For an altcoin season to develop, the index must rise further in the coming period, with a substantial share of the top 100 cryptocurrencies outperforming Bitcoin.
Market participants are closely watching Bitcoin dominance, the performance of major altcoins, and further movements in the Altcoin Season Index to determine whether capital flows into altcoins are strengthening.
This is not investment advice.
Source: cryptonews.net
