Bitcoin Dominance
Bitcoin remains the king of crypto, with over 50% of the market value. This dominance limits the growth potential for altcoins.
Altcoin Season Index
The Altcoin Season Index, which measures the outperformance of altcoins against Bitcoin, currently sits at 35. An index value of 75 indicates the start of an altcoin season.
Ethereum’s Role
Ethereum has shown strong gains, but the broader market needs to follow suit for an altcoin season to take hold.
Emerging Altcoins
Some lesser-known altcoins, like Pepe and Dogwifhat, have seen impressive gains, but these localized shifts are not enough to drive an overall altcoin season.
Market Cap and Investor Behavior
Altcoins make up less than 50% of the total crypto market cap. Investors tend to shift from Bitcoin to altcoins when Bitcoin’s price stabilizes, but this is not happening on a large enough scale to trigger an altcoin season.
Barriers to Altcoin Season
- Bitcoin’s high price can deter new investors from altcoins.
- A significant redistribution of market cap from Bitcoin to altcoins is needed for a full-fledged altcoin season.
