The crypto market is showing a clear shift in momentum, as the Altcoin Season Index has dropped to 38, down from 42 just a day earlier, according to the latest data from CoinMarketCap, reported by BlockBeats. This change marks a growing dominance of Bitcoin over altcoins in recent market behavior.
The Altcoin Season Index is a unique tool used to measure whether the market is favoring altcoins or Bitcoin. It calculates how many of the top 100 cryptocurrencies by market cap have performed better than Bitcoin over the last 90 days. When this number is high (above 75), it signals a strong altcoin season. A score below 25 often indicates a full Bitcoin season. A score between 25 and 75 suggests a mixed or neutral market. With a score of 38, the market is clearly leaning toward Bitcoin’s strength, but we are not yet in a complete Bitcoin season.
This shift tells us that only 38 out of the top 100 altcoins have managed to beat Bitcoin’s performance over the past three months. It suggests that investors may be moving funds back into Bitcoin, likely due to market uncertainty, rising dominance, or broader macroeconomic trends influencing risk appetite.
This trend could also be a reflection of Bitcoin's perceived safety and stability during uncertain times in the crypto space. Traders and investors often move to Bitcoin when altcoins become too volatile or when they expect a market cooldown.
While altcoins showed strength earlier this year, the recent drop in this index shows that the tide is turning. If the Altcoin Season Index continues to fall, we might see Bitcoin’s dominance grow further, reducing short-term opportunities in the altcoin space.
For now, the market seems to be in a transitional phase — not fully bullish on altcoins, but not fully dominated by Bitcoin either. Investors should monitor this index closely, as it gives valuable insight into where capital is flowing in the crypto market.