Is Altcoin Season Here Already? VanEck Answers As Bitcoin Price Struggles Below $100,000

Scott Matherson

8 months ago

3 mins read

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The recent Bitcoin price action has been marked by a correction from its all-time high of $108,135 achieved just a week ago. Although Bitcoin has largely held up above the $90,000 mark, the correction has seen the cryptocurrency falling to as low as $92,500 in the past 24 hours. This decline has not only shaken confidence in Bitcoin’s immediate trajectory but has also turned attention toward the altcoin market.

Although the altcoin market has also mirrored this trend of Bitcoin’s price correction, many investors and analysts are expecting an altcoin rally very soon. VanEck weighed in on this expectation with a confident declaration on the social media platform X. According to the investment firm, the crypto industry is currently in an altcoin season that started on November 27.

Altcoin Season Is Here Already—VanEck

Bitcoin, the leading cryptocurrency, has struggled to maintain its price momentum above the $100,000 mark, raising questions about where the market might head next. While many Bitcoin proponents are expecting a renewed surge in 2025 with the incoming Trump administration in the US, other crypto analysts are turning to the altcoin market. Interestingly, analysts at VanEck suggest that the current crypto environment may favor altcoins against Bitcoin.

Matthew Sigel, head of digital research at VanEck, elaborated on this phenomenon, explaining that Bitcoin’s dominance in terms of market cap, liquidity, and volume often lays the groundwork for altcoins to outperform. According to Sigel, as capital flows into the market, risk-on sentiment tends to boost nascent crypto applications, particularly those in decentralized finance, gaming, and NFTs, which in turn allows the altcoin market to outperform Bitcoin.

VanEck’s outlook on the altcoin season also highlighted data from Artemis’s Altcoin Season Index, which measures how many of the top 50 altcoins outperform Bitcoin over a 90-day period. According to this index, which ranges from a value of 0 to 1, the altcoin season starts with a reading of 0.6. At the time of writing, the index is currently well above this level, having recently reached 0.8. This suggests that the crypto industry is currently in an altcoin season where profits taken from Bitcoin will start to flow into top altcoins.

Diverging Views On Current Metrics

Interestingly, Artemis’s Altcoin Season Index differs from more conventional metrics, such as those provided by CoinMarketCap. CoinMarketCap defines an altcoin season as a period when 75% of the top 100 altcoins outperform Bitcoin over the last 90 days. By this measure, the index currently sits at 51, though it peaked at an impressive 87 on December 4.

Nonetheless, many market participants are anticipating an altcoin season, with many betting on the overperformance of many top altcoins against Bitcoin. According to a recent technical analysis by crypto analyst Captain Faibik, altcoin season has officially begun.

“$BTC (Dominance) Rising Wedge Breakout + Retest confirmed! ✅ #Altseason has officially begun—get Ready for the ride! 🚀📈,” he said.

Altcoins market cap chart from Tradingview.com (Altcoin season) — Altcoin market cap drops to $1.36 trillion | Source: Crypto Total Market Cap Excluding BTC from Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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