Is a good time coming for altcoins? Altcoin Season Index Analysis
Despite the explosive bull market so far in 2024, the outlook is not entirely favorable for the so-called altcoins or alternative currencies. According to Blockchain Center's Altcoin Seasonal Index, conditions favor Bitcoin over the rest of the market. However, that reality could change in the coming months.
It is worth mentioning that this index is a formidable tool for investors as it presents clear prospects. With it, diversified investment strategies can be organized among the main assets of this market. In that sense, it is a reference to take into consideration when looking for answers to the cryptosphere environment.
According to the index data, in three months, the index is currently at 22, indicating that we are in a âBitcoin season.â For context, a score of 25 or lower refers to the #BTCâïž season, while a score of 75 or higher implies the aforementioned altcoin season.Â
To determine this score, the 90-day performance of the top 50 cryptocurrencies is evaluated and contrasted with that of Bitcoin. It should be noted that this equation excludes several token models such as the so-called covert ones used in decentralized finance.
Is there hope for altcoins?
Although the index seems unquestionably negative for altcoins in the three-month period, in the one-month period things improve. This means that the market is probably on the verge of an alternative currency season.Â
On the other hand, when it comes to the annual Altcoin Index, it is scored 39. Consequently, it is evident that in the last 12 months altcoins are not better than Bitcoin in terms of performance. It is worth mentioning that the methodology of this index provides a more accurate picture of the relative performance of altcoins compared to #Bitcoin
