According to BeInCrypto on August 28, despite positive macro signals and the possibility of the Fed lowering interest rates in September, an altcoin season has not truly emerged.
CoinMarketCap data shows the Altcoin Season Index at 44, Bitcoin still dominates at about 58%, and Deribit warns that the market lacks liquidity and widespread growth momentum.
MAIN CONTENT
The altcoin season has not arrived, the Altcoin Season Index is 44 according to CoinMarketCap.
Bitcoin still holds a central position with 58% dominance.
Deribit assesses that liquidity and trading volume are not sufficient to trigger an altcoin wave.
Has the altcoin season started?
Short answer: No; according to BeInCrypto on August 28, the Altcoin Season Index stands at 44, below the threshold of 75 which is considered a strong signal for an altcoin season.
Explanation: The level of 44 indicates that most capital is still concentrated in Bitcoin and there has not been enough strong spillover to other tokens to form a widespread altcoin season.
Can macro signals drive altcoins?
Short answer: Possibly, but not guaranteed; BeInCrypto cites comments from Deribit that central banks' easing policies could increase liquidity and speculative flows into risk assets.
Analysis: Although accommodative monetary policy typically supports risk assets, the shift to altcoins also depends on market liquidity and actual trading volumes, two factors that have not yet reached necessary levels.
Liquidity freedom from monetary policy could increase market liquidity and attract speculative flows into risk assets.
– Jean-David Péquignot, Chief Commercial Officer, Deribit, stated on August 28, source: BeInCrypto
Why is the market lacking widespread growth momentum?
Short answer: The market lacks both liquidity and sufficient trading volume to spread the upward momentum from Bitcoin to altcoins, according to Deribit's assessment mentioned in BeInCrypto.
Analysis: Lack of liquidity makes price fluctuations difficult to pull in sustainable capital flows into smaller tokens; investors often wait for volume and widespread growth momentum to reduce risks when moving capital away from Bitcoin.
What does the current data on Bitcoin and Ethereum indicate to investors?
Short answer: Bitcoin still dominates 58% of the market share, Ethereum has seen some appreciation compared to Bitcoin but not enough to trigger an altcoin season.
Analysis: The strengthening of Ethereum compared to Bitcoin may be an early sign of a shift, but to confirm an altcoin season, the Altcoin Season Index needs to surpass important thresholds and show growth spreading to many other tokens.
Frequently Asked Questions
What is the current Altcoin Season Index level?
According to the recorded CoinMarketCap data, the Altcoin Season Index is at 44, far from the 75 level considered the threshold for a clear altcoin season.
What is the current Bitcoin dominance and what does this figure signify?
Bitcoin dominance is reported at 58%, indicating that Bitcoin still holds a large share of the cryptocurrency market capitalization and remains central.
Does easing monetary policy help altcoins appreciate?
Deribit believes that easing policies could increase liquidity and attract speculative flows into risk assets, but it does not guarantee the start of an altcoin season if trading volumes are lacking.
What factors should be monitored to recognize an upcoming altcoin season?
According to analytical sources, it is important to monitor the Altcoin Season Index, total market trading volume, and the price spread from Bitcoin to many other tokens.
Source: https://tintucbitcoin.com/altcoin-44-van-xa-moc-75/
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