Is Altcoin Season Here Already? VanEck Answers As Bitcoin Price Struggles Below $100,000
24 Décembre 2024 - 12:30PM
NEWSBTC
The recent Bitcoin price action has been marked by a correction
from its all-time high of $108,135 achieved just a week ago.
Although Bitcoin has largely held up above the $90,000 mark, the
correction has seen the cryptocurrency falling to as low as $92,500
in the past 24 hours. This decline has not only shaken confidence
in Bitcoin’s immediate trajectory but has also turned attention
toward the altcoin market. Although the altcoin market has
also mirrored this trend of Bitcoin’s price correction, many
investors and analysts are expecting an altcoin rally very soon.
VanEck weighed in on this expectation with a confident declaration
on the social media platform X. According to the investment firm,
the crypto industry is currently in an altcoin season that started
on November 27. Altcoin Season Is Here Already—VanEck Bitcoin, the
leading cryptocurrency, has struggled to maintain its price
momentum above the $100,000 mark, raising questions about where the
market might head next. While many Bitcoin proponents are expecting
a renewed surge in 2025 with the incoming Trump administration in
the US, other crypto analysts are turning to the altcoin market.
Interestingly, analysts at VanEck suggest that the current crypto
environment may favor altcoins against Bitcoin. Related Reading:
XRP Price On Its Way To $10 In Only 3 Months If It Follows This
Pattern Matthew Sigel, head of digital research at VanEck,
elaborated on this phenomenon, explaining that Bitcoin’s dominance
in terms of market cap, liquidity, and volume often lays the
groundwork for altcoins to outperform. According to Sigel, as
capital flows into the market, risk-on sentiment tends to boost
nascent crypto applications, particularly those in decentralized
finance, gaming, and NFTs, which in turn allows the altcoin market
to outperform Bitcoin. VanEck’s outlook on the altcoin season also
highlighted data from Artemis’s Altcoin Season Index, which
measures how many of the top 50 altcoins outperform Bitcoin over a
90-day period. According to this index, which ranges from a value
of 0 to 1, the altcoin season starts with a reading of 0.6. At the
time of writing, the index is currently well above this level,
having recently reached 0.8. This suggests that the crypto industry
is currently in an altcoin season where profits taken from Bitcoin
will start to flow into top altcoins. Diverging Views On Current
Metrics Interestingly, Artemis’s Altcoin Season Index differs from
more conventional metrics, such as those provided by CoinMarketCap.
CoinMarketCap defines an altcoin season as a period when 75% of the
top 100 altcoins outperform Bitcoin over the last 90 days. By this
measure, the index currently sits at 51, though it peaked at an
impressive 87 on December 4. Related Reading: Dogecoin Price
Roadmap To $0.75 ATH: Why The Next Wave Is Bearish And Could Drop
To $0.15 Nonetheless, many market participants are anticipating an
altcoin season, with many betting on the overperformance of many
top altcoins against Bitcoin. According to a recent technical
analysis by crypto analyst Captain Faibik, altcoin season has
officially begun. “$BTC (Dominance) Rising Wedge Breakout +
Retest confirmed! ✅ #Altseason has officially begun—get
Ready for the ride! 🚀📈,” he said. Featured image created with
Dall.E, chart from Tradingview.com
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