- Altcoins lead as Bitcoin’s dominance drops below 60% on December 14, 2024.
- The Altcoin Season Index shows a market shift with altcoins outperforming Bitcoin.
- Historical patterns suggest Bitcoin may regain dominance after altcoin rallies.
As of Dec 14, 2024, the crypto market shows a shift in dominance, with altcoins taking the lead. The Altcoin Season Index, tracked by CoinMarketCap, is at 65, signaling altcoin season.
This change contrasts with previous periods when Bitcoin dominated the market. The index, which tracks the performance of the top 100 coins over the past 90 days, shows that at least 75% of these coins have outperformed Bitcoin.
Understanding the Altcoin Season Index
With a score of 65, the current index indicates that altcoins are surpassing Bitcoin, but not to the extent seen in past altcoin surges. Although Bitcoin remains strong, the market dynamics are changing, with altcoins gaining influence.
The Altcoin Season Index reflects the market’s volatility. A week ago, the index was at 83, showing a powerful altcoin rally. However, a month ago, the index was lower at 36, suggesting a quieter market where Bitcoin had stronger dominance.
The yearly chart also offers insights into the market’s seasonal nature. On December 4, 2024, the index peaked at 87, while Bitcoin’s dominance dropped to a low of 13 in early September.
Analyst’s View on the Altcoin Season
Analyst DefiWimar notes that periods of Altcoin Season correlate with a sharp decline in Bitcoin’s dominance. This occurred in 2020 when similar patterns appeared, and altcoins like $AVAX and $DOGE saw gains.
Although altcoins are currently in the spotlight, the market remains unpredictable. Historical trends suggest that periods of altcoin dominance often precede a resurgence of Bitcoin. During the 2017-2018 and 2020-2021 Altcoin Seasons, altcoins rallied, but Bitcoin regained its dominance afterward.
Bitcoin’s dominance is below 60%, a level not seen since late 2021, while altcoins continue to gain momentum.
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