Everyone is talking about the Altcoin Season, but have you ever thought about how the Altcoin Season is determined?
The Altcoin Season Index is a popular tool provided by cryptocurrency data giant CoinMarketCap (CMC), offering a snapshot of market sentiment and performance.
It helps investors assess whether altcoins (cryptocurrencies other than Bitcoin) are generally outperforming Bitcoin, and conversely, the index specifically tracks the performance of the top 100 cryptocurrencies listed on CMC (excluding stablecoins and wrapped tokens) over the past 90 days.
The index breaks down market phases as follows:
Altcoin Season Index: Over the past 90 days, 75% or more of the top 100 altcoins have outperformed Bitcoin. The index is typically 75 or higher.
As of June 17, 00:35 UTC, the Altcoin Season Index was only 24. This figure represents a decline of 1 point from the previous day, reinforcing the current market narrative. An index score of 24 aligns perfectly with the definition of "Bitcoin Season," indicating that the vast majority of the top 100 altcoins have failed to keep up with Bitcoin's performance over the past three months.
The cryptocurrency market is known for its cyclicality. After Bitcoin Season, altcoin prices often catch up, or even surge significantly, leading to Altcoin Season. There are opportunities to buy promising altcoins in anticipation of the eventual return of Altcoin Season.
