The crypto market has been booming lately, with a lot of money flowing in. Bitcoin has been leading the charge, hitting new all-time highs. Ethereum, though a bit slower to join the party, has also seen a huge influx of money in the last couple of days, surging by 24% in the past week. This has pushed Ethereum above $3,000 for the first time since August.
Altcoins Are Gaining Momentum
This surge in Ethereum has put a spotlight on the rest of the altcoin market, especially the possibility of an “altcoin season.”
The total market cap of all cryptocurrencies excluding Bitcoin has been steadily increasing since the beginning of November. It’s up by 27% in just a week, breaking out of a downward trend that started in March.
One crypto analyst, Captain Faibik, believes that the altcoin party hasn’t even started yet. He predicts that the altcoin market cap could increase by another 31% before the end of the year, reaching a new high for 2024.
Is Altcoin Season Closer Than We Think?
The Altcoin Season Index, which measures the performance of altcoins compared to Bitcoin, is currently at 38 out of 100. This is still a bit far from the 75 threshold that usually signals an altcoin season. However, with the recent momentum in the altcoin market, many believe that an altcoin season could be closer than we think.
An altcoin season is when altcoins start to outperform Bitcoin as investors diversify their portfolios. Right now, many of the top altcoins are already doing better than Bitcoin. Ethereum, Solana, Dogecoin, and Cardano are all up by 25% to 70% in the past week, compared to Bitcoin’s 16% gain.
With all this happening, it’s looking like the altcoin market is getting ready for a big surge. Could this be the start of altcoin season? Only time will tell.
