Alternative Currency Season Index Revealed: Is Bitcoin Dominance a Golden Opportunity?
Understanding the Alternative Currency Season Index: A Cryptocurrency Market Metric
The Alternative Currency Season Index, tracked by CoinMarketCap, currently shows a value of 15, indicating a “Bitcoin Season.” This index evaluates the performance of the top 100 cryptocurrencies (excluding stablecoins and wrapped tokens) over the past 90 days. A value below 25 suggests that Bitcoin is outperforming most altcoins.
Why Does Bitcoin Season Matter in the Cryptocurrency Market?
• Bitcoin Dominance: Investors tend to gravitate towards Bitcoin during periods of market uncertainty, as it is considered a safer and more stable asset.
• Weak Performance of Altcoins: Although some altcoins may experience growth, their gains are typically less compared to Bitcoin during this period.
• Capital Flow Dynamics: There is often a shift in capital from altcoins to Bitcoin, which enhances Bitcoin's dominance in the market.
Strategic Moves During Bitcoin Season
• Researching Altcoins: This time is considered suitable for researching strong altcoin projects in terms of technology, team, and use cases, which may be undervalued during Bitcoin season
