- Altcoin season is here as more tokens have outperformed BTC over the past 90 days.
- The altcoin rally provided more room for growth, but analysts remain cautious.
The long-awaited altcoin season is here, after strengthening into December.
According to Blockchain Center factsthe altcoin seasonal index reached a twelve-month high of 82, reinforcing that it was a solid ‘alt season’ and not Bitcoin [BTC].
Source: Blockchain Center
Top Winners – HBAR, XRP, DOGE
The increased value followed massive pumps on top tokens such as Ripple [XRP], Hedera [HBAR], Stellar [XLM]And Dogecoin [DOGE] performed better than the king coin.
Over the past 90 days, HBAR has posted gains of over 600%, while XLM and XRP follow closely behind with 515% and 402%. But ether [ETH] and Binance [BNB] lagged behind BTC.
Source: Blockchain Center
A decline in Bitcoin dominance (BTC.D) accelerated the impressive altcoin peak in November.
On November 21, BTC.D peaked at 60% but has since fallen to 54%, allowing the altcoin sector to grow as capital rotates from the king coin to other sectors.
In fact, the altcoin wave could expand if historical trends play out. At the time of writing, OTHERS, which tracks the altcoin sector minus the top 10 tokens, has gained ground against BTC over the past four weeks.
Source: Others/BTC, TradingView
The ratio crossed a key 50-day MA (Moving Average), but was still far from the overhead resistance, which cooled the 2017 and 2021 rallies.
If history repeats itself, OTHERS/BTC could target resistance from above, allowing the sector to recover further. This could happen if BTC’s dominance remains muted.
CryptoQuant founder Ki Young Ju warned that with more ETF players and more institutions on BTC, the historic capital rotation into altcoins may not happen.
“This alternative season will not be what you expected. It’s going to be weird and challenging. Only a chosen few will win the game. Market sentiment is good, but there is not much fresh liquidity.”
That said, analysts have warned of a possible sell-the-news event during Trump’s inauguration in January 2025. If so, readjusting risk management before the event to preserve capital would be critical could be.