Recent Bitcoin price action characterized by correction from the all-time high of $108,135 achieved just one week ago. Although Bitcoin has largely risen above the $90,000 mark, the correction has seen the cryptocurrency drop as low as $92,500 in the past 24 hours. This decline has not only boosted confidence in the direction of Bitcoin immediately but has also turned attention to the altcoin market.
Although the altcoin market it also mirrors this trend of the Bitcoin price correction, many investors and analysts are expecting an altcoin rally very soon. VanEck emphasized this expectation with a confident confirmation on the social media platform X. According to the investment company, the crypto industry is currently in the altcoin season that began on November 27.
Altcoin season is already here – VanEck
Bitcoin, the main cryptocurrency he struggled to maintain his price movement above the $100,000 mark, raising questions about where the market could go next. While there are many proponents of Bitcoin expect a new increase in 2025 with the incoming Trump administration in the US, other crypto analysts turning to the altcoin market. Interestingly, analysts at VanEck suggest that the current crypto environment may favor altcoins against Bitcoin.
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Matthew Sigel, head of digital research at VanEck, explained this phenomenon, explaining that Bitcoin's dominance in terms of market cap, liquidity, and size often sets the stage for altcoins to outperform. According to Sigel, as capital flows into the market, risk sentiment tends to increase nascent crypto applications, particularly those in decentralized finance, gaming, and NFTs, which allow the Altcoin market outperforms Bitcoin.
VanEck's take on the altcoin season also highlighted data from Artemis' Altcoin Season Index, which measures how many of the top 50 altcoins outperformed Bitcoin over a 90-day period. According to this index, which ranges from a value of 0 to 1, the altcoin season begins with a reading of 0.6. At the time of writing, the index is currently well above this level, having recently reached 0.8. This suggests that the crypto industry is currently in an altcoin season where profits taken from Bitcoin begin to flow into higher altcoins.
Different Views on Current Metrics
Interestingly, Artemis Season's Altcoin Index differs from more conventional metrics, such as those provided by CoinMarketCap. CoinMarketCap defines an altcoin season as a time when 75% of the top 100 altcoins outperform Bitcoin over the past 90 days. With this measure, the index is currently at 51, although it peaked at 87 on 4 December.
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Nevertheless, many market participants are expecting an altcoin season, with many betting on the outperformance of many major altcoins against Bitcoin. According to a recent technical analysis by crypto analyst Captain Faibik, the altcoin season has officially begun.
“$BTC (Dominance) Rising Wedge Breakout + Retest Confirmed! ✅ #Altseason has officially begun – get ready for the ride! 🚀📈,” he said.
Featured image created by Dall.E, chart from Tradingview.com
