Altseason Begins as Altcoins Outperform Bitcoin by 17%

Santiment, a prominent data and analytics platform for cryptocurrencies, has declared the commencement of altseason, a period marked by a surge in the prices of alternative cryptocurrencies, or altcoins, relative to Bitcoin. This announcement is backed by various market indicators and trends that suggest a shift in investor sentiment towards altcoins.

Bitcoin has reached a new all-time high of over $118,000. In this context, most leading cryptocurrencies have outperformed Bitcoin in terms of price performance over the past seven days. The largest Ethereum wallets, holding 10,000 ETH or more, collectively own 75.74% of the coin's total supply. This is the highest level of concentration among whales since May 2017 and is considered a powerful bullish signal by Santiment's experts.

The number of XRP wallets storing more than 1 million coins has reached an all-time high of 2,743, with the volume of cryptocurrency they hold also increasing. Both trends are seen as very positive signs for Ripple's asset, according to Santiment. Analysts estimate that the altcoin season will continue as long as Bitcoin holds above the key psychological level of $110,000, allowing traders to comfortably redistribute profits from Bitcoin's growth into other coins.

However, experts advise caution. The value of the MVRV metric for Bitcoin is one of the alarming signals. The ratio of market price to realized value of the asset has already surpassed the value recorded in May, which was followed by a correction after the previous all-time high. Santiment also noted that the meme-coin segment led the weekly growth by plus 17%, potentially indicating the concluding phase of the market rally. When speculative assets lead the market, it could mean that greed is peaking, they noted.

For Ethereum, an alarming signal is the extremely optimistic sentiment regarding the asset. This usually indicates that a short-term price peak is approaching, according to Santiment. The altcoin index is at 27, indicating that traders still favor Bitcoin. The dominance of the first cryptocurrency is 62.5%. Despite this, altcoins have shown impressive growth. However, the real rally will begin after Bitcoin's dominance is reduced to 45%, according to analyst Matthew Hyland.