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Recent Bitcoin price action marked with correction from its all-time high of $108,135 earned last week. While Bitcoin has held firm above the $90,000 mark, a correction has seen the cryptocurrency drop to as low as $92,500 in the past 24 hours. This decline has not only shaken confidence in the Bitcoin fast lane but also focused attention on the altcoin market.
Although the altcoin market repeated this practice of Bitcoin’s price correction, many investors and analysts are expecting an altcoin rally in the near future. VanEck weighed in on this expectation with a confident announcement on social media X. According to the investment company, the crypto industry is currently in the altcoin era that began on November 27.
Altcoin Season Is Already Here-VanEck
Bitcoin, the leading cryptocurrency, has struggled to maintain its price momentum above the $100,000 mark, raising questions about where the market might be headed next. Although many Bitcoin supporters are we expect a renewed operation in 2025 and the incoming Trump administration in the US, some crypto analysts they turned to the altcoin market. It is interesting that VanEck analysts suggest that the current crypto environment may favor altcoins against Bitcoin.
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Matthew Sigel, head of digital research at VanEck, elaborated on the situation, explaining that Bitcoin’s dominance in terms of market size, liquidity, and volume often sets the stage for altcoins to perform very well. According to Sigel, as money enters the market, risk appetite tends to increase emerging crypto applications, especially those in finance, gaming, and NFTs, which also allows the altcoin market to surpass Bitcoin.
VanEck’s opinion on altcoin season also highlighted data from Artemis’ Altcoin Season Index, which measures how many of the top 50 altcoins outperformed Bitcoin over a 90-day period. According to this indicator, which goes from 0 to 1, the altcoin period begins with a reading of 0.6. At the time of writing, the index is currently above this level, having recently reached 0.8. This suggests that the crypto industry is currently in the altcoin era where the profits taken from Bitcoin will begin to flow to the top altcoins.
A Different Look at Current Metrics
Interestingly, Artemis’s Altcoin Season Index is different from conventional metrics, such as those provided by CoinMarketCap. CoinMarketCap defines an altcoin season as a period when 75% of the top 100 altcoins outperform Bitcoin in the past 90 days. At this rate, the index currently sits at 51, although it reached a surprising 87 on December 4.
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Nevertheless, many market participants are waiting for the altcoin season, with many betting on the outperformance of many top altcoins against Bitcoin. According to the latest technical analysis by crypto analyst Captain Faibik, the altcoin season has officially begun.
“$BTC (Dominance) Rising Wedge Breakout + Retest Confirmed! ✅ The #Altseason has officially begun—get ready to ride! 🚀📈,” he said.
The featured image was created with Dall.E, a chart from Tradingview.com
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