The Season of Altcoins is Coming, Bitcoin's Correction May Provide a Rebound Opportunity for Altcoins
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Recently, Bitcoin's price has experienced a correction, falling from the historical high of $108,135 set a week ago to $92,500. This price drop has not only shaken market confidence in Bitcoin's short-term trend but also shifted the focus to the altcoin market. Although altcoins have also reflected Bitcoin's correction, many investors and analysts believe that the altcoin market will see a rebound soon.
VanEck recently announced on the social media platform X that the cryptocurrency industry is in an "altcoin season" since November 27. VanEck's head of digital research, Matthew Sigel, further explained that Bitcoin's dominance lays the foundation for altcoins' performance. As capital flows into the market, risk appetite tends to drive growth in emerging crypto applications such as decentralized finance, gaming, and NFTs, which may allow altcoins to outperform Bitcoin.
VanEck's outlook on the altcoin season also referenced data from the Artemis Altcoin Season Index, which shows that an increasing number of the top 50 altcoins are outperforming Bitcoin. The index started at 0.6 and has now reached 0.8, indicating that the market is entering an altcoin season, with funds possibly flowing from Bitcoin into these tokens.
In contrast, CoinMarketCap's traditional altcoin season benchmark shows that currently about 51% of the top 100 altcoins are outperforming Bitcoin. Although it peaked at 87 on December 4, it also hints at the market's activity level and potential for upward movement.
Many market participants have begun to bet on the rebound of altcoins, with cryptocurrency analyst Captain Faibik stating through technical analysis that the altcoin season has officially begun, and it is expected that more top altcoins will surpass Bitcoin, entering a new bull market phase.