Altcoin Season Index Falls to 35, Signals Bitcoin Dominance
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Altcoin Season Index Falls to 35, Signals Bitcoin Dominance The Altcoin Season Index, a key metric for assessing cryptocurrency market trends, dropped to 35 as of November 21, 2024, according to data from CoinMarketCap (CMC). This two-point decline from the previous day solidifies the current Bitcoin Season, indicating that the majority of altcoins are underperforming compared to Bitcoin (BTC). Understanding the Altcoin Season Index The Altcoin Season Index measures how well altcoins perform relative to Bitcoin over a specified time period. How It Works The index ranges from 1 to 100. Below 25: Strong Bitcoin Season (BTC significantly outperforms altcoins). Above 75: Altcoin Season (most altcoins outperform BTC). Between 25-75: A balanced market, with no clear dominance. Calculation Criteria The index excludes stablecoins and wrapped tokens and evaluates the performance of the top 100 cryptocurrencies by market capitalization over the past 90 days. Current Trends: Bitcoin Season in Full Swing 1. Bitcoin Outperformance With the Altcoin Season Index at 35, only a small percentage of altcoins have managed to outperform Bitcoin recently. This signals that Bitcoin continues to dominate the market as investor interest consolidates around the leading cryptocurrency. 2. Altcoins Lagging Altcoins have seen slower price movements and reduced trading volumes compared to Bitcoin, reflecting a lack of momentum in the broader crypto market. What Drives Bitcoin Season? 1. Institutional Investment in Bitcoin Spot Bitcoin ETFs and increasing institutional adoption have funneled capital into BTC, driving its dominance. 2. Market Sentiment The Crypto Fear & Greed Index remains in the “Extreme Greed” zone, with bullish sentiment heavily skewed toward Bitcoin. 3. Stability in Market Leaders Bitcoin’s large market cap and established infrastructure make it a safer choice during periods of market consolidation. Implications for Investors Opportunities in Bitcoin Season BTC-Focused Strategies: Investors may find it…
Filed under: News - @ November 21, 2024 5:21 pm