Altcoin boom triggers: decoding the Season Index
Since the year kicked off, Bitcoin [BTC] has charted impressive climbs, and more recently, Ethereum [ETH] has joined the surge, marking considerable rises in its value.
Given ETH’s ascending path alongside the surge in values of other digital assets, speculations about the possible onset of an altcoin season have surfaced.
Altcoin season remains elusive
Oftentimes, a rise in Ethereum's value is seen as a precursor to the altcoin season. Yet, for such a season to be declared, other indicators must also display notable advances.
Presently, according to blockchaincenter.net, the Altcoin Season Index is at 35. The benchmark for declaring an ‘altcoin season’ is achieved when 75% of the top 50 cryptocurrencies outshine Bitcoin.
Bitcoin's dominance delays the altcoin season
A decrease in the dominance of Bitcoin could pave the way for an altcoin season as investors broaden their portfolios, steering their investments towards other cryptocurrencies, thus diluting Bitcoin’s market cap dominance.
As it stands, the total market capitalization of cryptocurrencies sits at roughly $2.55 trillion, as per CoinMarketCap data. Bitcoin's dominance exceeds 52%, allocating less than half of the market’s share to altcoins, among which Ethereum commands 18.2%.
Beyond that, post a substantial price movement, Bitcoin's price often stabilizes. This newfound stability may encourage investors looking for short-term profits to transition from Bitcoin to altcoins.
Moreover, Bitcoin’s towering price point might deter new investors, who could gravitate towards altcoins. Such a shift could further redistribute the overall market cap in favor of altcoins.
The performance of Ethereum and leading altcoins
While Bitcoin continues to maintain its season, Ethereum and other altcoins such as Pepe [PEPE] and Dogwifhat [WIF] have registered impressive gains of late. Over the past three months, PEPE has soared past Bitcoin's performance by a staggering 1,000%.
Its daily chart highlights a series of recent record highs and a persistent bullish trend, backed by its Relative Strength Index (RSI).
In the same vein, WIF has witnessed an 800% uptick over the same timeframe, maintaining a robust bullish streak. Currently, WIF’s price hovers around $3.70, marking an increase of close to 9%.
Ethereum too is exhibiting a bullish trend and is situated in the oversold territory as per its RSI. It's presently trading at around $3,890, observing a slight uplift of under 1%.
These developments indicate that while Bitcoin retains its stronghold, the altcoin sphere is gearing up with substantial momentum.
