The recent Bitcoin price action has seen a correction from its all-time high, causing the cryptocurrency to fall to as low as $92,500 in the past 24 hours. This has raised concerns about Bitcoin’s immediate trajectory and has shifted focus towards the altcoin market. Despite the altcoin market also experiencing a price correction, many investors and analysts are anticipating an altcoin rally in the near future. Investment firm VanEck has declared that the crypto industry is currently in an altcoin season that began on November 27.
Bitcoin has struggled to maintain its price momentum above $100,000, leading to speculation about the market’s future direction. While some are looking forward to a renewed surge in 2025 with the new Trump administration in the US, others are turning to the altcoin market. VanEck analysts suggest that the current environment may favor altcoins over Bitcoin. According to Matthew Sigel, head of digital research at VanEck, Bitcoin’s dominance in market cap, liquidity, and volume often paves the way for altcoins to outperform, especially in areas like decentralized finance, gaming, and NFTs.
VanEck’s outlook on the altcoin season is supported by data from Artemis’s Altcoin Season Index, which measures the performance of the top 50 altcoins compared to Bitcoin over a 90-day period. The index, which ranges from 0 to 1, currently stands above 0.6, indicating that the altcoin season is in full swing. This suggests that profits from Bitcoin are likely to flow into top altcoins as the market sentiment leans towards risk-on.
Despite variations in metrics such as Artemis’s Altcoin Season Index and CoinMarketCap’s definition of an altcoin season, there is a general consensus among market participants that an altcoin season is imminent. Many are betting on the overperformance of top altcoins against Bitcoin in the coming days. According to a technical analysis by crypto analyst Captain Faibik, the breakout and retest of the rising wedge pattern in Bitcoin dominance signal the official beginning of altcoin season, prompting investors to prepare for potential gains.
In conclusion, the recent correction in Bitcoin’s price has led to a shift in focus towards the altcoin market, with many anticipating an altcoin rally in the near future. VanEck’s declaration of an ongoing altcoin season and the data from Artemis’s Altcoin Season Index support this sentiment. With Bitcoin struggling to regain momentum above $100,000, investors are looking towards altcoins as potential outperformers in the current crypto environment. As the altcoin season gains momentum, market participants are preparing for potential gains in top altcoin projects.
