Bitcoin, the flagship cryptocurrency, has struggled to break the elusive $100,000 mark, raising concerns about its long-term trajectory. While some Bitcoin advocates predict a significant surge in 2025, potentially driven by political shifts like a new Trump administration, industry insiders are turning their attention to altcoins. Researchers at VanEck suggest that the crypto market could see a shift in preference toward altcoins, underpinned by their potential for higher returns.
Matthew Sigel, VanEck’s Director of Digital Research, highlights that Bitcoin’s vast market capitalization, liquidity, and trading volume often create opportunities for altcoins to outperform. According to Sigel, the inflow of capital into the crypto ecosystem typically sparks a risk-on sentiment, driving growth in emerging sectors like decentralized finance (DeFi), gaming, and NFTs. These innovations enable altcoins to capitalize on momentum and surpass Bitcoin in terms of performance during specific cycles.
VanEck also sheds light on Artemis's Altcoin Season Index, a tool that measures how many of the top 50 altcoins outperform Bitcoin over a 90-day period. A reading of 0.6 on this index marks the onset of altcoin season, with values above 0.8 signaling a strong trend. Currently, the index indicates that altcoins are gaining significant ground, reflecting a redistribution of Bitcoin’s gains into the broader market. This differs from CoinMarketCap’s methodology, where altcoin season occurs when 75% of the top 100 altcoins outperform Bitcoin. As of now, CoinMarketCap’s index stands at 51, having reached a recent high of 87 on December 4.
Market sentiment further aligns with this shift. Technical analysts, including Captain Faibik, have pointed to clear signals of an ongoing altcoin season. As investors diversify their portfolios, the focus on leading altcoins suggests a dynamic and evolving crypto landscape, offering lucrative opportunities beyond B
itcoin.
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