#AltcoinMomentum
Altcoins on the Rise: Are They the Future of the Crypto Market?
With Donald Trump winning the US Presidential elections, crypto investors have been very bullish in anticipation of better regulatory clarity. This coupled with record inflows into the Bitcoin ETFs has led to a significant price action in Bitcoin, currently trading at $93,300.
Historically, when Bitcoin rises, it often triggers an "Altcoin Season," where tokens excluding Bitcoin experience increased price gains and market cap growth, sometimes outpacing Bitcoin’s growth. While BTC is hitting all-time highs, the Altcoin Season Index, which tracks altcoin performance relative to Bitcoin, has dropped to 39, signalling weak momentum in altcoins. With such momentum, will we see another Altseason like the one in 2021? Let's take a closer look at it.
Declining Bitcoin Dominance
An altcoin season often begins when Bitcoin's market dominance starts to decline, signalling a shift in investor focus toward alternative tokens. Following this pattern, Bitcoin’s dominance has recently dipped from a high of 61.33% to 59.57%, even as BTC reaches new all-time highs. The total market capitalization of the crypto market excluding Bitcoin and Ethereum has surged to $837 billion, marking its highest value since early 2022. However, this figure remains over 35% below the peak in November 2021, indicating room for further upside in Altcoins. If Bitcoin stabilizes after this surge, the likelihood of capital rotating into altcoins could increase setting the stage for another Altcoin rally.