📉 Altcoin Season Index Decrease – What Does It Indicate?
🔍 A drop from 55 → 38 indicates that altcoins are weaker compared to Bitcoin. This has 3 main implications:
1. 💰 Money is flowing back to BTC
• When the market is unstable or lacks growth momentum, investors tend to seek refuge in Bitcoin – the largest and safer asset.
• The fact that only 38/100 altcoins outperform BTC reflects high risk with altcoins at this time.
2. 📊 Market sentiment: "Risk-off"
• Investors are reducing their risk appetite, stopping speculation on altcoins, and shifting to high liquidity, large-cap assets.
• Small-cap coins are more susceptible to sell-offs or have low liquidity.
3. ⏳ Not yet altcoin season
• Altcoin season is typically confirmed when the index exceeds 75.
• The drop to 38 may be a sign that BTC is preparing to dominate or the market needs to accumulate further.
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🔮 Suggested strategy:
• ⚠️ Limit FOMO on altcoins when the cash flow is unclear.
• ✅ Prioritize BTC, ETH, or trend-following coins like RWA, AI, DeFi.
• 📅 Monitor this index to catch the real altcoin season – usually follows a strong BTC rally.
