Coinmarketcap Altcoin season index now sits below 40, indicating that altcoins continue to weakly weakly in the bitcoin. What will happen next?
The CMC Altcoin season index is a device that helps determine whether the market is in the ALTCOIN season or bitca (BTC) season by tracking the performance of the top 100 cryptocurrency in the last 90 days. When 75% or more of these altcoins perform better than bitcoin, the market is considered in the Altcoin season.
In December 2024, the index hit 64, indicating the onset of the Altcoin season. However, since the beginning of January, the index has been built above 40 and is now showing symptoms of further decline. As of 17 February, the index stands at 36, indicating that bitcoin is currently leading the market.
Despite the continuous market instability, Bitcoin has demonstrated notable strength, remaining above $ 96,000. The direction of the large market can be determined by the next action of bitcoin. Despite the overall optimistic tone, Martun, an analyst with a cryptoctive, seems to disagree.
MAartunn states that the Inter-Access Flow Pulse (IFP) indicator is indicating the tendency of a recession. It tracks the movement of bitcoin between metric derivatives and spot markets. Typically, growing flows in derivatives indicate a rapid market. However, the current negative signals suggest that bitcoin may withstand resistance before breakout.
On the other hand, altcoins have difficulty, perhaps as a result of the increasing number of fresh launch. When there are many new products entering the market, the liquidity becomes thin.
COINGECKO co-founder Bobby ONG released the data that showed over 600,000 tokens alone in January. It seems, investors are actively transferring their money between several different tokens, causing damage to altcoin performance.
Hyperlicid (Hyp) and Ripple (XRP) are one of the best performing altcoins in the last 90 days, growing 735% and 143% respectively. On the other hand, several AI tokens have taken a big hit despite attracting the largest mindsheer from the crypto communities. The render (RNDR), Artificial Superintendent Alliance (FET), and nearby protocols (near) are more than 40% below in the last 90 days.
Historically, Altcoin’s weather usually follows the consolidation or decline of bitcoin. The next large growth for altcoins will be determined by comprehensive economic factors, regulatory development and general market conditions.
