Recent trends in major cryptocurrency assets, particularly Altcoins (excluding Bitcoin), indicate a notable rise as they reach significant levels. While some believe this increase relates to a decline in Bitcoin’s market dominance, many experienced analysts have differing views.
Are We Entering an Altcoin Season?
Jamie Coutts, the chief crypto analyst at Real Vision, recently shared insights on what may signify the beginning of an altcoin season. He challenges the common view that Bitcoin’s market dominance is the sole indicator for an altcoin rally.
His perspective encourages traders to consider a broader analysis to assess the potential for an altcoin season rather than relying strictly on Bitcoin’s dominance. He argues that the performance of altcoins relative to Bitcoin, rather than Bitcoin’s market capacity alone, is critical in gauging altcoin activity.
Coutts suggests that a true alt season is identified through the market breadth, which reflects the number of altcoins surpassing Bitcoin in performance. Currently, this market breadth indicator sits at 67%, which may suggest that the anticipated alt season has commenced.
Despite Coutts’ assertions of an ongoing alt season, Daan Crypto Trades, an analyst and investor, argues that the Alt Season index hasn’t achieved the necessary thresholds to officially label the season as starting.
The current metric of 67%, indicating that 67% of the top 50 altcoins have outperformed Bitcoin in the past three months, does not confirm the start of an altcoin season. A metric of 75% or above is needed for an official declaration.
Shifting Perspectives on Asset Rotation
Ki Young Ju, founder and CEO of CryptoQuant, has weighed in, suggesting that the traditional view of asset rotation from Bitcoin to altcoins may be diminishing. This change points towards emerging factors, including the growing individual relevance of altcoins and various market influences.
Ju emphasizes that the recent growth in altcoin trading volume is mainly influenced by Stablecoin and fiat pairings, rather than BTC pairs, indicating genuine market development instead of mere asset rotation.
