The recent price action of Bitcoin has been marked by a correction from the all-time high of $108,135 reached just a week ago. Although Bitcoin has largely maintained a level above $90,000, this correction has caused the cryptocurrency to drop to a low of $92,500 in the past 24 hours. This decline not only shakes confidence in Bitcoin's immediate trajectory but also shifts attention towards the altcoin market.
Although the altcoin market also reflects this Bitcoin price correction trend, many investors and analysts expect altcoins to rise soon. VanEck has considered this expectation with a confident statement on the social media platform X. According to the investment firm, the cryptocurrency industry is currently in an altcoin season starting from November 27.
The Altcoin Season has arrived—VanEck
Bitcoin, the leading cryptocurrency, has struggled to maintain its upward momentum above $100,000, raising questions about the market's next direction. While many Bitcoin supporters are hoping for a new price rally in 2025 with the upcoming Trump administration in the United States, other cryptocurrency analysts are shifting their focus to the altcoin market. Interestingly, analysts at VanEck argue that the current cryptocurrency environment may favor altcoins more than Bitcoin.
Matthew Sigel, head of digital research at VanEck, further explained this phenomenon, noting that Bitcoin's dominance in market capitalization, liquidity, and volume often lays the groundwork for altcoins to perform better. According to Sigel, when capital flows into the market, risk-on sentiment tends to drive the emergence of new cryptocurrency applications, particularly in decentralized finance, gaming, and NFTs, thereby allowing the altcoin market to perform better than Bitcoin.
VanEck's outlook on the altcoin season also highlights data from the Altcoin Season Index of Artemis, which measures how many of the top 50 altcoins outperform Bitcoin over a 90-day period. According to this index, ranging 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 much higher than this level, recently reaching 0.8. This indicates that the cryptocurrency industry is currently in an altcoin season, where profits garnered from Bitcoin will start flowing into top altcoins.
Diverse perspectives on the current metrics
Interestingly, the Altcoin Season Index from Artemis differs from more conventional metrics, such as those provided by CoinMarketCap. CoinMarketCap defines altcoin season as the period during which 75% of the top 100 altcoins outperform Bitcoin over the past 90 days. According to this measure, the index is currently at 51, although it peaked at an impressive 87 on December 4.
However, many market participants are anticipating an altcoin season, with many betting on the superior performance of several top altcoins compared to Bitcoin. According to a recent technical analysis by cryptocurrency analyst Captain Faibik, the altcoin season has officially begun.
