- Altcoin Season Index hits 67, highest since June, signaling market rotation
- Bitcoin dominance falls 12% in 3 months, now at 58.17% as altcoins gain share
- Fed rate decision could align with index gains to trigger full altseason
The Altcoin Season Index has climbed to 67, its highest level in three months, sparking fresh optimism for an impending altcoin rally. The metric tracks the performance of the top 100 altcoins versus Bitcoin and is often used by traders to gauge whether market momentum is shifting away from BTC.
Data from CoinMarketCap shows the total altcoin market cap stands at $1.69 trillion, not far from the $1.72 trillion peak recorded in mid-August. The correlation between index strength and market cap levels highlights growing investor appetite for altcoins after a period of consolidation.
Related: Is Altcoin Season Here? Bitcoin Dominance Drops as Institutional Futures Volume Hits Record High
Bitcoin Dominance Slips as Capital Rotates
The move has come at Bitcoin’s expense. According to TradingView, Bitcoin dominance has dropped to 58.17%, down 12% since June. This rotation is consistent with past cycles where altcoin inflows rise as traders look for higher returns outside of BTC.
The shift underscores a familiar “see-saw” dynamic: as Bitcoin consolidates after major rallies, capital flows into altcoins, driving temporary outperformance. Analysts caution, however, that BTC still sets the pace for broader market sentiment.
Macro Factors Could Define the Next Phase
While technical indicators are pointing toward an altcoin season, macro conditions may determine whether the momentum carries forward. Traders are closely watching the Federal Reserve’s next FOMC meeting for clarity on interest rates.
Expectations for a rate cut remain strong, and a dovish move could inject further liquidity into risk assets, including crypto. Analysts note that a supportive macro backdrop would likely align with the rising Altcoin Season Index to set the stage for a full-blown altseason.
Related: Altcoin Season Indicators Strengthen as Bitcoin Loses Market Share
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