- If Bitcoin’s dominance continues dropping, the market might witness the beginning of an altcoin season, boosting altcoins’ value.
- Blockchain Center data: only 21 cryptocurrencies outperformed Bitcoin recently, possibly heralding a broader altcoin season soon.
As Bitcoin edges closer to the elusive $100,000 mark, a noticeable shift has occurred in the cryptocurrency market. According to the latest data from TradingView, Bitcoin’s dominance has slipped for the third consecutive day, now hovering around 59%.
This metric, which represents Bitcoin’s market cap as a proportion of the entire cryptocurrency market cap, traditionally signals the concentration of investment in Bitcoin when it’s high.
A dip in this dominance often suggests an increased investor interest in altcoins, such as Dogecoin, Cardano, and Solana, among others. This scenario is sparking speculations around the potential onset of an “Altcoin Season” (altseason), a market phase where altcoins significantly outperform Bitcoin, both in value and trading volume.
The term “altseason” is not new to the crypto community. It refers to a period, typically lasting three months, where the majority of altcoins experience substantial financial growth that exceeds Bitcoin’s market performance.
Current observations by Blockchain Center reveal that within the last 90 days, only 21 out of the top 50 cryptocurrencies by market cap have outperformed Bitcoin. Notably, Stellar, Dogecoin, Mantra, Sui, and ADA have posted the most impressive gains.
For a true “altseason” to be declared, at least 75% of these top 50 cryptocurrencies (excluding stablecoins and asset-backed tokens like WBTC or stETH) need to surpass Bitcoin’s performance over the same period.
As of now, the Altcoin Season Index, a tool used to gauge whether the market is in an altseason, stands at 43. This suggests a moderate but not overwhelming shift away from Bitcoin dominance, indicating that while some altcoins are performing exceptionally well, Bitcoin continues to hold substantial market sway.
Moreover, this trend could herald shifts in investment strategies, with investors possibly reallocating resources to leverage gains in the altcoin markets.
This reallocation reflects a broader diversification within the crypto space, possibly indicating maturing market dynamics where investors are looking beyond Bitcoin to accumulate wealth.
As the current market index hovers between a defined Bitcoin or altcoin season, the coming weeks are critical. They will likely determine if the increasing interest in altcoins continues to rise and potentially ushers in a full-fledged altseason.
