Bitcoin News Today: Bitcoin Season Continues as Altcoin Season Index Remains at 36

Cryptocurrency markets are currently in a "Bitcoin Season," as indicated by the Altcoin Season Index, which stood at 36 as of July 31, 00:30 UTC. This score—tracked by CoinMarketCap (CMC)—confirms that 25% or fewer of the top 100 altcoins by market capitalization have outperformed Bitcoin over the last 90 days [1]. The index, a tool designed to measure capital flow and sentiment between Bitcoin and altcoins, operates on a scale from 1 to 100, with thresholds clearly defining whether the market is in "Altcoin Season," "Bitcoin Season," or a transitional "Neither" phase.

Bitcoin's dominance is attributed to a combination of macroeconomic uncertainty, the recent approval of spot Bitcoin ETFs, the looming Bitcoin halving event, and a broader shift in investor behavior toward safer assets. In times of economic volatility, Bitcoin has increasingly been viewed as a form of "digital gold," drawing both institutional and retail capital [1]. The launch of spot Bitcoin ETFs has also streamlined access for traditional investors, further solidifying Bitcoin's position as the market's primary store of value [1]. Additionally, the narrative around the upcoming halving event has spurred accumulation activity, diverting attention and capital away from altcoins.

The implications of Bitcoin Season are clear for crypto investors. Most altcoins are likely to underperform, with a shift in focus toward Bitcoin's price action. This period can be an opportunity to rebalance portfolios, strengthen core Bitcoin holdings, and selectively accumulate high-quality altcoins at lower prices [1]. However, it also presents risks, particularly for smaller altcoins, which may experience heightened volatility as liquidity shifts.

Strategic approaches include dollar-cost averaging into Bitcoin, conducting in-depth research on altcoin projects with strong fundamentals, and implementing risk management techniques such as stop-loss orders. Investors are advised to monitor key indicators for a potential return to Altcoin Season, including Bitcoin price stabilization, increased retail interest, and a sustained rise in the Altcoin Season Index [1].

Currently, the index remains below 75, meaning the market is not in an Altcoin Season. Investors should remain patient and avoid chasing pumps or making impulsive decisions based on short-term price swings. Bitcoin Season does not last forever, and understanding the cyclical nature of the crypto market is essential for long-term success.

Source: [1] Altcoin Season Index: Decoding the Crucial Shift to Bitcoin Dominance (https://coinmarketcap.com/community/articles/688ac0005351ea6fce535ff4/)