Hold onto your hats, crypto fam! The CoinMarketCap Altcoin Season Index is currently flashing 31, and that, my friends, is a big deal. For those unfamiliar, this index tracks how many of the top 100 cryptocurrencies are outperforming Bitcoin. When it breaks above 30, it’s typically considered the start of altcoin season – that glorious time when altcoins go absolutely bonkers and send returns soaring!
Photo source:www.blockchaincenter.net
Let’s break down what this even means. Essentially, 31 out of the top 100 coins have seen gains that have blown Bitcoin out of the water in the last 90 days. This isn’t just a little bump; it signals a potential shift in market momentum.
What’s the Altcoin Season Index?
This isn’t some random number! It’s derived by comparing the performance of the top 100 altcoins against Bitcoin over a 90-day rolling period. The higher the number, the more altcoins are winning.
Why Does This Happen?
Typically, altcoin seasons follow Bitcoin’s major rallies. Once Bitcoin has established itself, smart money starts flowing into altcoins, seeking bigger percentage gains. Think of it as a ripple effect!
Is it a Guarantee of Gains?
Absolutely not! The crypto market is volatile as hell. However, the Altcoin Season Index is a useful indicator, offering a glimpse into potential opportunities. Do your research, manage your risk, and don’t FOMO into anything. But get ready, because things are potentially about to get wild!
