Bitcoin’s recent price dip below $100,000 has some investors looking elsewhere for profits. While Bitcoin has held relatively steady above $90,000, the correction has sparked interest in the altcoin market.
Altcoins in the Spotlight
Many believe an altcoin rally is imminent. Investment firm VanEck even declared that altcoin season started on November 27th. They argue that Bitcoin’s dominance often sets the stage for altcoins to shine. As money flows into the crypto market, the riskier altcoins—especially those in DeFi, gaming, and NFTs—tend to see increased investment.
VanEck’s Prediction
VanEck’s prediction is supported by Artemis’s Altcoin Season Index. This index, ranging from 0 to 1, signals altcoin season when it hits 0.6. Currently, it’s well above that, recently reaching 0.8, suggesting a strong altcoin season is underway. This means profits from Bitcoin could be flowing into top altcoins.
Conflicting Indicators
However, not everyone agrees on the definition of “altcoin season.” CoinMarketCap uses a different metric: 75% of the top 100 altcoins outperforming Bitcoin over 90 days. While this metric shows a lower percentage currently, it recently peaked at 87% on December 4th, indicating a strong altcoin rally.
Technical Analysis Supports the Claim
Independent crypto analyst Captain Faibik also supports the altcoin season prediction, citing a technical analysis indicating a breakout and retest, confirming the start of altcoin season.
The Bottom Line
Despite differing metrics, many believe altcoin season is here, with significant potential for altcoins to outperform Bitcoin in the near future. Whether you’re a seasoned investor or just starting out, it’s a market worth watching closely.
