The CoinMarketCap Altcoin season index is now below 40, noting that altcoins continue to underperform compared to bitcoin. What is the next step?
The Altcoin CMC index of the season is a tool that helps determine whether the market is in the Altcoin or Bitcoin season (BTC) by following the performance of the best cryptocurrencies in the last 90 days. When 75% or more of these altcoins surpass bitcoin, the market is considered in the Altcoin season.
In December 2024, the index struck 64, signaling the start of the Altcoin season. However, since the beginning of January, the index has remained just more than 40 and now shows signs of additional decline. As of February 17, the index was 36, indicating that Bitcoin is currently at the head of the market.
Despite the continuous volatility of the market, Bitcoin has demonstrated remarkable force, remaining above $ 96,000. The wider market management can be determined by the next Bitcoin action. Despite the global optimistic tone, Maartunn, an cryptochant analyst, seems to be in disagreement.
Maartunn underlines that the inter-enchange flow pulse (IFP) indicates a downward trend. This metric follows the Bitcoin movement between the derivatives and the punctual markets. As a rule, the increase in derivative flows indicates a bull market. However, the current negative signal suggests that Bitcoin could face additional resistance before a break.
On the other hand, Altcoins had difficulties, perhaps following the growing number of new launches. Liquidity tends to spread thin when there are too many new products entering the market.
Bobby NGO, Coigecko co-founder, published data showing that more than 600,000 tokens were created in January only. Apparently, investors actively move their money between many different tokens, which makes Altcoin performance suffer.
Hyperliquid (hype) and undulation (XRP) are among the most efficient altcoins in the last 90 days, increasing 735% and 143% respectively. On the other hand, many AI tokens have taken a major success despite the AI that attracted the greatest minsthare of cryptographic communities. Rendered (RNDR), an artificial alliance Superintelligence (FET) and near the protocol (near) are all down by more than 40% in the last 90 days.
Historically, the Altcoin season generally follows the consolidation or decline of Bitcoin. The next major increase for altcoins will be largely determined by macroeconomic factors, regulatory developments and general market conditions.
