The Altcoin Season Index recently registered a score of 29 as of June 12, firmly signaling that the cryptocurrency market is currently in what is termed 'Bitcoin Season.' This metric, tracked by CoinMarketCap, assesses the relative performance of the top 100 cryptocurrencies excluding stablecoins and wrapped tokens over the past 90 days versus Bitcoin (BTC). A score below 25 indicates Bitcoin Season, where Bitcoin outperforms the majority of altcoins, while above 75 signals Altcoin Season.
Currently, with a score near 29, the market favors Bitcoin, suggesting investor capital may be moving towards the perceived safety and liquidity of Bitcoin amid uncertain or consolidating conditions. This phase typically sees Bitcoin's dominance in market capitalization rise while many altcoins underperform or lag behind Bitcoin’s price gains. However, this period also offers opportunities for investors to accumulate altcoins at lower relative prices and carefully research altcoins that might become future outliers.
Separately, cryptocurrency analysis firm Alphractal has highlighted that altcoin season historically begins in June and may be imminent in 2025 as well. Their analysis found that 23% of altcoins are currently outperforming BTC when examining shorter timeframes, suggesting the Bitcoin Season may be ending. Two primary scenarios could trigger altcoin season: bitcoin showing signs of weakness after substantial gains or BTC bottoming out after declines. Investment trends in Web3 also show mixed signals, with Q1 2025 investment at the highest since mid-2022 but a notable decline in Q2.
These reports emphasize the cyclical nature of the cryptocurrency market where altcoin and Bitcoin seasons alternate, shaped by factors such as market psychology, liquidity, technological developments, and macroeconomic conditions. Investors are advised to adapt their strategies accordingly by prioritizing thorough research, managing portfolio allocations, focusing on quality altcoins, and maintaining realistic expectations about potential returns during Bitcoin Season.