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Highlights
- Altcoin Season Index soars to 84 as Ethereum, Solana, Dogecoin surge.
- XRP gains 12% weekly, Dogecoin jumps 10%, Solana holds near $240.
- The altcoin rally comes amid buying pressure from digital asset treasury companies.
The crypto market has entered the altcoin season with the index jumping to 84. The value of the index affirms the fact that other cryptocurrencies are performing better than Bitcoin in the present cycle.
Altcoin Season Index Rises To 84
The data from the Blockchain Center shows that the altcoin season index has risen to 84, confirming that it is alt season. This suggests that investors favor higher-risk, greater-reward tokens besides the leading cryptocurrency.
Therefore, in cases where most altcoins outperform Bitcoin, it indicates that most investors are shifting investments out of Bitcoin into these other cryptocurrencies. This collective outperformance confirms the shift in market momentum and defines the beginning of altcoin season. Hence, the index at 84 confirms that the 75% threshold has been significantly exceeded.
Recently, Bloomberg analyst James Seyffart stated that the altcoin season has arrived. He noted that the purchase from digital asset treasury companies has contributed to this rally for several altcoins.
The timing of this transition is important. Bitcoin season has dominated for the past 65 days, but momentum has now flipped. However, according to Blockchain Center, altcoin seasons typically last for an average of 17 days.
The capital rotation from Bitcoin is apparent, as can be seen in the performances of meme assets such as Dogecoin and infrastructure networks such as Ethereum and Solana. If the index rises further into altcoin territory in the next few weeks, the question would not be whether the season has started. Instead, it would be how long it can be sustained.
Altcoin Leaders Drive Capital Rotation Beyond Bitcoin
This pattern is also reflected in the price performances of top altcoins. XRP is trading above $3.15 following a 12% gain in the last week. Ethereum remains above $4,690, maintaining its upward trajectory.
Dogecoin price is currently above $0.30 after rising by almost 10% in the last day. Solana is holding firm near $240 despite a slight daily dip. Solana continues its impressive recovery following the passage of the Alpenglow proposal.
According to market commentator Milk Road, altcoin seasons tend to perform best when the U.S. ISM Purchasing Managers Index (PMI) is above 50. At this level, it signals economic expansion. In the past, this level has identified times when large flows of liquidity into risk assets have created parabolic altcoins rise. Presently, the ISM PMI is at its lowest levels in decades, and standing below 50 in the last 30 months.
This macroeconomic context tips the scales in the current rotation towards altcoins. If there are further increases in terms of investor optimism and PMI indices begin to expand, the current market surge may resemble the altcoin season run in 2020 and 2021. The momentum in this period saw Ethereum, Solana, XRP, and Dogecoin hit new all-time highs.
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