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Recent bitcoin Price Action has been marked by a correction from its all-time high of $108,135 reached just a week ago. Although bitcoin has largely remained above the $90,000 mark, the correction has seen the cryptocurrency fall as low as $92,500 in the past 24 hours. This drop has not only shaken confidence in bitcoin's immediate trajectory, but has also diverted attention to the altcoin market.
Although the altcoin market <a target="_blank" href="https://bitcoinist.com/crypto-market-1-billion-outflows-bitcoin-altcoins/” rel=”nofollow”>has also reflected this trend Due to the bitcoin price correction, many investors and analysts expect an altcoin rally very soon. VanEck weighed in on this expectation with a confident statement on social media platform
Altcoin season is here: VanEck
bitcoin, the leading cryptocurrency, has struggled to maintain its price momentum above the $100,000 mark, raising questions about where the market could head next. While many bitcoin advocates are expecting a new increase in 2025 with the incoming Trump administration in the US, other crypto analysts They are turning to the altcoin market. Curiously, <a target="_blank" href="https://x.com/vaneck_us/status/1871387749233897945″ rel=”nofollow”>VanEck analysts suggest that the current crypto environment may favor altcoins over bitcoin.
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Matthew Sigel, head of digital research at VanEck, elaborated on this phenomenon, explaining that bitcoin's dominance in terms of market cap, liquidity, and volume often sets the stage for altcoins to outperform. According to Sigel, as capital flows into the market, risk sentiment tends to drive nascent crypto applications, particularly those in decentralized finance, gaming, and nfts, which in turn allows the altcoin market to outperform bitcoin.
VanEck's perspective on the altcoin season also highlighted data from Artemis' Altcoin Season Index, which measures how many of the top 50 altcoins outperform bitcoin over a 90-day period. Based on this index, which ranges between a value of 0 and 1, the altcoin season begins with a reading of 0.6. At the time of writing, the index is currently well above this level, having recently reached 0.8. This suggests that the crypto industry is currently in an altcoin season where profits made from bitcoin will begin to flow into major altcoins.
Divergent opinions on current metrics
Interestingly, the Artemis Altcoin Seasonal Index differs from more conventional metrics, such as those provided by CoinMarketCap. CoinMarketCap defines an altcoin season as a period in which 75% of the top 100 altcoins outperform bitcoin in the last 90 days. By this measure, the index currently stands at 51, although it reached an impressive peak of 87 on December 4.
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However, many market participants are anticipating an altcoin season, with many betting on the outperformance of many major altcoins against bitcoin. According to a recent technical analysis by crypto analyst Captain Faibik, the altcoin season has officially begun.
“$btc (Dominance) Rising Wedge Breakout + New Test Confirmed! The #Altseason has officially begun – get ready for the ride! ”, <a target="_blank" href="https://x.com/CryptoFaibik/status/1871431018135318781″ rel=”nofollow”>said.
Featured image created with Dall.E, chart from Tradingview.com
