Recent price movements over the past seven days have been highlighted by a decline in Bitcoin market dominance, and the concept of an altcoin season in this bullish cycle is drawing near. Historically, a decline in Bitcoin's share of the overall market portends what traders call “altcoin season,” a period when other cryptocurrencies' market capitalization outpaces Bitcoin in terms of price growth. was common.
As it stands, the CMC Altcoin Season Index is at 72, indicating the beginning of the altcoin season.
Bitcoin market dominance faces pressure
Bitcoin is still on its way to reaching the $100,000 threshold, with many investors expecting this breakout in early December. However, recent market trends suggest that investor interest is gradually shifting from Bitcoin to altcoins. As such, cryptocurrencies such as XRP, Solana, and Ethereum have been able to outperform major crypto assets.
Over the past few months, Bitcoin has been dominant, especially during its recent rally to highs. According to Coinmarketcap data, as of this writing, Bitcoin's dominance is 56.1% of the total cryptocurrency maket cap. This is still a majority, but it is highlighted by a 2.84% decline in the past 24 hours. To put this into perspective, Bitcoin's market power on November 21st was 60.1%.
Meanwhile, Ethereum's share of the total cryptocurrency market capitalization rose to 13.1%. Meanwhile, other altcoins such as Solana and XRP are also increasing their overall market share. The broader altcoin sector currently accounts for 30.8% of the total market capitalization and has increased by 2.7% in the past 24 hours.
Bitcoin is currently trading at $97,351. Chart: TradingView
According to cryptocurrency analyst Captain Fibig, Bitcoin's market capitalization has fallen below the lower trendline of the ascending wedge pattern. This type of formation is usually considered a bearish reversal pattern when it appears in an uptrend. With that in mind, he stated, “Alt season 2024-25 has officially kicked off!”
Altcoin Seasonal Index Shows Market Advantage
CoinMarketCap's Altcoin Season Index is currently reading 72, reflecting the increasing strength of the altcoin market compared to Bitcoin. The index measures the price performance of the top 100 cryptocurrencies over a rolling 90-day period. For the market to officially qualify as Altcoin Season, at least 75% of these tracked altcoins must outperform Bitcoin and the index must reach a threshold of 75.
While the current number of 72 falls just short of this mark, it does highlight the altcoin's notable outperformance compared to Bitcoin. To compare this, the altcoin season index was 48 last week and 32 last month. The altcoin season threshold of 75 is almost within reach, and market momentum suggests that a shift to altcoin dominance may soon be confirmed.
Featured image from Morningstar, chart from TradingView
