- Altcoin season occurs when alternative cryptocurrencies (altcoins) outperform Bitcoin in price growth.
- Savvy investors diversify portfolios by moving profits from Bitcoin to altcoins during altcoin seasons.
- The current index stands at 31, suggesting potential. Historical altcoin seasons offer valuable reference points.
The crypto sphere is ever-evolving, and each new season brings its share of surprises and opportunities. Altcoin season is a period when alternative cryptocurrencies (altcoins) outperform Bitcoin in terms of price growth.
Read CRYPTONEWSLAND on
google news
According to the post above, we might be on the brink of a new altcoin season. But what are the indicators, and why should we pay attention?
While savvy investors like MicroStrategy have been accumulating huge amounts of Bitcoin recently. Historically, increased interest in Bitcoin precedes an altcoin season.
Investors diversify their portfolios by moving profits from Bitcoin to altcoins. With the recent Bitcoin purchases, speculators are likely to explore altcoins more closely.
The Altcoin Season Indicator: Where Do We Stand?
The altcoin season index, which measures altcoins’ performance relative to Bitcoin, currently stands at 31. While it has fallen from 80 over the past six months, this level suggests potential. In 2021, Bitcoin dominance dropped from 72% to 40.4%. As Bitcoin stabilizes, altcoins may gain fresh investor confidence and trigger substantial market activity.
Historical altcoin seasons, like the bull runs of 2017-2018 and 2020-2021, witnessed remarkable surges in altcoin prices. These serve as valuable reference points, highlighting the potential impact of altcoin seasons on the overall crypto market.
Keep an eye on Bitcoin’s movements, watch transaction volumes, and pay attention to altcoin dominance. While altcoin seasons can be lucrative, remember that they come with increased risks and market volatility.
Read Also
disclaimer read moreCrypto News Land (cryptonewsland.com)
