Altcoin Season Index Reflects Bitcoin's Growing Market Influence
The Altcoin Season Index, a metric from CoinMarketCap, stands at 19, indicating just 19 altcoins outperformed Bitcoin in the last 90 days. A low index figure signals Bitcoin's dominance, affecting market sentiment and potentially shifting investor focus towards the leading cryptocurrency.
CoinMarketCap's Altcoin Season Index reflects current market trends by measuring the performance of top altcoins against Bitcoin. With the index presently at 19, up to 81 of the top 100 cryptocurrencies have underperformed against Bitcoin in the last 90 days. In contrast, the peak at 78 earlier indicated that a majority of altcoins outperformed Bitcoin.
Bitcoin dominance is reflected as investor preference shifts, leading the larger crypto market to follow bitcoin’s trends more closely and resulting in a subsequent decline in altcoin investment interest. Industry leaders have responded with a focus on Bitcoin as the more stable choice during periods of market uncertainty. According to CoinMarketCap, "The index value of 19 indicates that approximately 19 of the top 100 altcoins have outperformed BTC in the last 90 days." While there were no specific statements from high-profile figures, past observations indicate that periods of low altcoin performance align with investors seeking security in Bitcoin's relative stability.
Bitcoin's Dominance: Impact and Historical Context
With an index level of 19, Bitcoin's dominance over altcoins mirrors similar patterns seen during early bull markets or risk-off periods where a shift towards Bitcoin as a stabilizing asset was observed.
Data from CoinMarketCap indicate Bitcoin's current market details: priced at $89,272.70, with a market cap of $1.78 trillion and 24-hour trading volume down by 40.67%. Over the past 90 days, Bitcoin has seen a price decline of 20.30%, amid changes in the broader crypto market. Bitcoin's circulating supply is nearing its cap, highlighting the scarcity and value proposition.
The Coincu research team analyzes these developments and suggests that Bitcoin's dominance during these periods often impacts altcoins negatively in terms of liquidity and speculative interest. When Bitcoin leads the market, altcoin ecosystems have historically experienced reduced growth and TVL.