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The recent Bitcoin price action is marked with a correction versus the all-time high of $108,135 reached a week ago. While Bitcoin has largely remained above $90,000, the correction has seen the cryptocurrency fall to $92,500 over the past 24 hours. This drop has not only shaken confidence in Bitcoin’s immediate trajectory, but has also focused attention on the altcoin market.
Although the altcoin market has also reflected this trend Due to Bitcoin’s price correction, many investors and analysts are expecting an altcoin rally very soon. VanEck responded to this expectation with a confident statement on social media platform X. According to the investment company, the crypto industry is currently in an altcoin season that started on November 27.
The Altcoin season is already here – VanEck
Bitcoin, the leading cryptocurrency, has done just that struggled to maintain price momentum above the $100,000 mark, raising questions about where the market might go. While many Bitcoin proponents are expects a new increase in 2025 with the new Trump administration in the US and other crypto analysts are turning to the altcoin market. Interestingly enough, analysts at VanEck suggest that the current crypto environment could favor altcoins over Bitcoin.
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Matthew Sigel, head of digital research at VanEck, elaborated on this phenomenon, explaining that Bitcoin’s dominance in terms of market capitalization, liquidity and volume often lays the foundation for altcoins to excel. According to Sigel, as capital flows into the market, the sense of risk tends to drive new crypto applications, particularly those in decentralized finance, gaming and NFTs, which in turn could allow the altcoin market to outperform Bitcoin.
VanEck’s take on altcoin season also highlighted data from Artemis’ Altcoin Season Index, which measures how many of the top 50 altcoins outperform Bitcoin over a 90-day period. According to this index, which ranges from a value of 0 to 1, the altcoin season starts with a reading of 0.6. At the time of writing, the index is currently well above this level and recently reached a level of 0.8. This suggests that the crypto industry is currently in an altcoin season where Bitcoin profits will flow into the top altcoins.
Differing opinions on current statistics
Interestingly, Artemis’ Altcoin Season Index differs from more conventional metrics, such as those from CoinMarketCap. CoinMarketCap defines an altcoin season as a period in which 75% of the top 100 altcoins outperform Bitcoin over the past 90 days. By this measure, the index currently stands at 51, although it peaked at an impressive 87 on December 4.
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Nevertheless, many market participants are anticipating an altcoin season, with many betting on the outperformance of many top altcoins against Bitcoin. According to a recent technical analysis from crypto analyst Captain Faibik, the altcoin season has officially begun.
“$BTC (Dominance) Rising Wedge Breakout + Retest Confirmed! ✅ #Altseason has officially started: get ready for the ride! 🚀📈,” he said.
Featured image created with Dall.E, chart from Tradingview.com