Bitcoin News Today: Bitcoin Season Confirmed as Altcoin Index Remains at 35

The Altcoin Season Index currently stands at 35, indicating the market is firmly in Bitcoin Season, where Bitcoin outperforms the majority of altcoins over the past 90 days [1]. This metric, tracked by CoinMarketCap, serves as a crucial tool for investors to assess whether the market is favoring Bitcoin or altcoins [1]. A reading below 25 typically signals a stronger Bitcoin Season, while a value above 75 denotes an Altcoin Season, where most altcoins outperform Bitcoin [1].

The index is calculated by comparing the performance of the top 100 cryptocurrencies—excluding stablecoins and wrapped tokens—against Bitcoin over a rolling 90-day period [1]. When 75% or more altcoins outperform Bitcoin, the market is considered to be in Altcoin Season; when 25% or fewer do, it is Bitcoin Season [1]. With the current index at 35, the market favors Bitcoin, reflecting cautious investor sentiment and a preference for capital preservation over speculative exposure to altcoins [1].

Bitcoin Season is characterized by a shift in capital flows toward Bitcoin, which is increasingly viewed as a store of value and a safer asset [1]. During this period, most altcoins tend to underperform, either stagnating or declining in value. Investor sentiment becomes risk-averse, with a reduced appetite for volatile altcoin exposure [1].

COINOTAG experts recommend that investors prioritize Bitcoin accumulation and adopt a selective approach to altcoin investments during this phase [1]. Strategic allocation strategies, such as dollar-cost averaging, can help mitigate the risks associated with Bitcoin’s volatility [1]. Additionally, investors should avoid overexposure to speculative altcoins and instead focus on projects with strong fundamentals and active development [1].

Bitcoin Season also brings about a distinct market narrative, with institutional adoption and macroeconomic factors playing key roles in shaping investor behavior [1]. In contrast, Altcoin Seasons are often driven by innovation and new narratives such as decentralized finance (DeFi), non-fungible tokens (NFTs), and layer-1 blockchain advancements [1].

The transition to an Altcoin Season typically follows Bitcoin’s consolidation phase after a major rally. Key indicators include a decline in Bitcoin dominance, capital rotation into altcoins, and the emergence of new market narratives [1]. While the timing of such a shift is uncertain, investors are advised to monitor Bitcoin dominance charts and altcoin trading volumes for early signals [1].

Investors should not rely solely on the Altcoin Season Index for decision-making but use it in conjunction with thorough research and risk management strategies [1]. Understanding the dynamics of market cycles is essential for optimizing portfolio growth and navigating the evolving crypto landscape [1].

As the market remains in Bitcoin Season, investors are encouraged to adjust their strategies accordingly, focusing on Bitcoin accumulation, selective altcoin exposure, and strict risk controls [1]. The Altcoin Season Index serves as a valuable tool in this process, offering clarity on market sentiment and guiding strategic decisions.

Source: [1] Bitcoin Season Likely Dominates as Altcoin Season Index Holds at 35, Suggesting Cautious Market Sentiment (https://en.coinotag.com/bitcoin-season-likely-dominates-as-altcoin-season-index-holds-at-35-suggesting-cautious-market-sentiment/)