Altcoin season index falls to lowest level
Only 17 altcoins have surpassed Bitcoin’s performance over the past 90 days
The cryptocurrency market is witnessing an unprecedented shift as the altcoin season index has plummeted to record lows.
This index by CoinMarketCap, which measures whether altcoins are outperforming Bitcoin, currently stands at 17—meaning only 17 altcoins have surpassed Bitcoin’s performance over the past 90 days, Beincrypto informs.
Market overview
Historically, the altcoin season index has been used to gauge whether the crypto market is in an "altcoin season," a period when at least 75% of the top 50 altcoins outperform Bitcoin. However, recent data paints a stark picture.
According to a separate altcoin season index by Blockchain Center, the metric is at 29. However, Changpeng Zhao believes that these are too strict standards, and an index level of 50 or above is already a positive sign.
Loading...
The decline in the index suggests that investor interest and capital are increasingly consolidating around Bitcoin, as altcoins struggle to keep pace. This trend could be reflective of broader market sentiments amid regulatory uncertainties, macroeconomic headwinds, and shifting risk appetites among crypto traders.
Key insights and looking ahead
CMC’s altcoin season index offers real-time insights into the market dynamics by tracking the performance of the top 100 altcoins. With the index currently at 17, it is evident that only a small fraction of altcoins are delivering gains that beat Bitcoin. This scenario signals a potential contraction in the diversification benefits that altcoins traditionally offer.
Market analysts are watching closely to see if this trend will persist or if there will be a rebalancing of investor portfolios as new developments in the regulatory and macroeconomic landscape emerge. A sustained low index could prompt traders to shift strategies, potentially catalyzing a renewed interest in altcoins if market conditions improve.
For now, Bitcoin’s dominance appears reinforced, leaving altcoin proponents with significant challenges to overcome.
We also wrote that Bitcoin dominance hits four-year high amid altcoin struggles.
