Crypto: Altcoin Collapse, Analysts Sound The Alarm

The altcoin season index, which measures the performance of major crypto assets against Bitcoin, shows worrying signs. With a recent drop in this index and a return of Bitcoin’s dominance, analysts are anticipating a period of turbulence for altcoins.

The Altcoin Season Index, a warning signal for crypto investors

Today, the Altcoin Season Index, a key barometer for measuring crypto performance, is raising the alarm. This indicator has dropped from 90 to 60, signaling a significant market correction. According to Blockchain Center data, it is currently at 61, a level that suggests caution, even among the most experienced investors.

To better understand, let’s recall that a score above 75 indicates a strong altcoin season, where at least 75% of cryptos outperform Bitcoin. The current decline reflects a major repositioning of investors, likely influenced by macroeconomic factors and uncertainties in the financial markets.

Moreover, Bitcoin’s dominance is regaining ground, signaling a possible return of capital towards the queen of cryptos. This evolution could mark a strategic turning point, redefining investors’ priorities in the crypto ecosystem.

Experts’ perspectives, between caution and optimism

Despite the current volatility, some analysts in the crypto market remain cautiously optimistic. Michael van de Poppe believes that altcoins could see a rebound once Bitcoin has gone through a consolidation phase. He thinks the current correction might represent an investment opportunity, rather than a sign of the end.

On his part, Miles Deutscher predicts a particularly favorable altcoin season between January and May 2025. His historical analyses are clear: Ethereum generates an average of 28% monthly return during this period, compared to only 3% the rest of the year. He highlights a recurring seasonal trend, validated by thorough statistical analyses.

However, Altcoin Sherpa urges caution, particularly regarding the use of leverage in uncertain market conditions. He warns that altcoins will likely continue to face downward pressure as long as Bitcoin remains unstable.

The crypto market is currently going through a complex repositioning phase. Between the drop in the Altcoin Season Index and the optimistic outlook of analysts, investors must adopt a vigilant and flexible approach. The coming weeks will be crucial in determining new trends and refining investment strategies.