Liquidity Flows to Bitcoin: Altcoin Season Is Officially Over
This June, the Altcoin Season Index fell to 13, the lowest level in two years, indicating that Bitcoin is still performing noticeably better than the great majority of altcoins. In the past, there has been a movement in market dominance toward Bitcoin, and this decline is part of a recurrent mid-year seasonal pattern.
The index’s data, which compares the performance of the top 50 altcoins to Bitcoin, supports the mood of the market right now. In the realm of digital assets, it represents a flight to quality and an increasing feeling of caution.
Altcoins Left Behind as Bitcoin Dominates Crypto Markets
BlockchainCenter’s Altcoin Season Index compares the performance of the top 50 altcoins to Bitcoin over a period of ninety days. Less than 25% of cryptocurrencies are outperforming Bitcoin at that time, indicating that it is “Bitcoin Season” if the score is less than 25.
This month, the indicator is only at 12, well within the range of Bitcoin Season. A low Altcoin Season Index is frequently interpreted by traders as an indication that Bitcoin is attracting greater liquidity and investment interest. With the majority of cryptocurrencies underperforming, this indicates a significant shift in capital toward Bitcoin.
June Curse for Altcoins? Historical Data Points to Imminent Turnaround
June has historically been a dismal month for altcoins, according to the most recent data on the Altcoin Index, which indicates a discernible market trend. According to the data, this indicator has already reached or almost reached identical lows in June 2019, 2020, 2022, 2023, and 2024. The lowest reading happened in July of 2021 when sentiment toward altcoins was at its peak.
Michael van de Poppe, an analyst, emphasizes this seasonal trend even more. He pointed out that since 2019, there has been a clear uptick in favor of Bitcoin at the halfway point of each year. These falls have frequently been followed by late-year cryptocurrency rebounds, indicating that a significant rebound may be imminent.
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