The Altcoin Season Index, which tracks the comparative performance of the top 100 cryptocurrencies against Bitcoin over a 90-day period, has dropped to 26, signaling that the crypto market is currently in Bitcoin Season. This means fewer than 25% of altcoins have outperformed Bitcoin recently. Bitcoin Season typically leads to altcoins underperforming Bitcoin, with altcoins either flat or decreasing even when Bitcoin rises. This phase implies a market focus on Bitcoin with reduced speculative altcoin rallies and heightened institutional and media attention on BTC.
Bitcoin Season often coincides with strong Bitcoin price gains driven by events such as halvings, institutional investment inflows, or macroeconomic trends. Investors are advised to reassess portfolio allocations, potentially increasing Bitcoin exposure while selectively accumulating altcoins with strong fundamentals at lower prices in preparation for the eventual return of Altcoin Season.
Meanwhile, analysis from another report highlights that despite Bitcoin's dominance above $100k price levels, some signs point to a potential future altcoin rally, such as decreasing long-term Bitcoin holder supply and historical patterns where altcoins outperform in the latter half of market cycles. Nonetheless, the current Altcoin Season Index reading indicates no immediate altcoin season, reinforcing a primarily Bitcoin-centric market environment in the near term.
Overall, market cycles showing phases of Bitcoin-led growth followed by altcoin resurgence are normal, and investors should remain patient and vigilant for signals indicating the shift back to altcoins. Both reports suggest the crypto market is presently favoring Bitcoin but remains positioned for possible altcoin gains in the medium to long term.