Altcoin Season (Altcoins, cryptocurrencies other than Bitcoin) - will it follow BTC's crazy surge? Is the previous crypto bull market scenario of "everything rising" still possible? Today (23rd), Binance founder CZ posted on X platform:
CoinMarketCap has an "Altcoin Season Index" feature. Not sure how accurate it is, but this index is rising...
FOMO season is coming.
A short line of text has ignited market expectations for the "Altcoin Season". What might this potential fund shift mean?
Altcoin Season Index Quickly Rebounds
CoinMarketCap's "Altcoin Season Index" (ASI) is used to measure the performance of the top 100 Altcoins relative to Bitcoin. When at least 75% of Altcoins outperform Bitcoin, it indicates the market has entered the Altcoin Season; otherwise, it's a Bitcoin Season. In late July, ASI jumped from 27 at the beginning of the month to the 53-60 range, revealing the market is transitioning from a Bitcoin-dominated landscape.
Note Index Lag
ASI provides a macro perspective, but as a retrospective calculation, it often gives signals after the surge has occurred. Additionally, the ASI index excludes stablecoins and wrapped tokens and uses market cap weighting, which might obscure the trends of smaller projects.
Altcoin Season often appears in the latter part of a bull market, with quick gains but also steep corrections. Facing potential FOMO, crypto investors should not rely solely on a single index, but simultaneously observe Bitcoin dominance, trading volume, on-chain activity, and the fear and greed index to control risks. This article is not investment advice, please make decisions cautiously.
