Altcoin Season Index Drops to 40, Prolonging Bitcoin Season
The Altcoin Season Index has dropped to 40, signaling an extended Bitcoin Season. Over the past 90 days, Bitcoin has outperformed more than 75% of the top 100 altcoins. Fewer than 25% of altcoins beat Bitcoin’s returns, pushing capital flows into BTC and boosting Bitcoin’s market dominance while reducing altcoin volatility. Key drivers behind this shift include macroeconomic uncertainty, institutional inflows via spot ETFs, halving anticipation, and Bitcoin’s digital-gold narrative. Traders should accumulate Bitcoin through dollar-cost averaging and rebalance portfolios to increase BTC weightings. They must also research high-potential altcoins ahead of the next altcoin season and apply strict risk management to underperforming tokens. Historically, altcoin seasons follow peaks in Bitcoin dominance, new DeFi/NFT narratives, economic stability or major altcoin upgrades. Monitoring these triggers and the Altcoin Season Index can help traders position for the next altcoin season cycle.
Bullish
The drop in the Altcoin Season Index to 40 indicates sustained capital inflows into Bitcoin, driving up BTC demand and market dominance. In the short term, this focus on Bitcoin and reduced altcoin volatility could lead to price gains. Over the long term, traders reallocating portfolios and building BTC positions may further support bullish momentum, although altcoin performance remains subdued until the next cycle emerges.