Okay, crypto fam, let’s talk altcoins! CoinMarketCap’s Altcoin Season Index is currently sitting at 31 – a slight dip from yesterday, but still a seriously interesting number. What does this mean? It means we’re seeing a growing number of altcoins outperforming Bitcoin.
Specifically, over the last 90 days, roughly 31 of the top 100 cryptocurrencies by market cap have seen gains that blow Bitcoin’s out of the water. That’s a significant shift, people!
But hold your horses! Don’t go throwing your life savings into Dogecoin just yet. This isn’t a full-blown altseason guaranteed. It’s a signal, a potential turning point, but the market is a fickle beast.
Let’s break down what the Altcoin Season Index actually tells us:
This index isn’t some magic crystal ball, but a data-driven indicator. It calculates the number of top 100 coins (excluding stablecoins and Bitcoin) that have seen a higher percentage increase than Bitcoin over a 90-day period.
A reading of 70 or higher is generally considered to be a full-blown altseason, where a large portion of the altcoin market is experiencing substantial gains. Below that, it’s more of a ‘watch and wait’ situation.
Historically, these periods of altcoin outperformance often follow significant Bitcoin rallies. Bitcoin sets the stage, and then the money starts flowing into riskier, higher-reward altcoins.
However, remember that altcoins are inherently more volatile than Bitcoin. Gains can be huge, but losses can be even bigger. Do your research, manage your risk, and don’t FOMO into anything!
