Bitcoin Dominance Hits 6-Month Low As Metrics Proclaim New ‘Alt Season’.
Bitcoin Dominance Hits 6-Month Low As Metrics Proclaim New ‘Alt Season’.
Over 75 percent of top 50 altcoins outperform Bitcoin despite chaos caused by Terra-Luna crash
By Shashank Bhardwaj
Image: Shutterstock
Bitcoin is facing tough competition from altcoins as the latest data suggests an “alt season” in play. The market value of Bitcoin has fallen to around 41 percent, which is the lowest since January of this year. The last six months of data suggest that altcoins have become a better investment than Bitcoin. Even after reaching a new high since the crash in June, Bitcoin has been overtaken by coins like Ethereum.
Despite the terrible run of Terra Luna, altcoins have managed to rally in recent months. Ethereum’s market capitalization has risen to 19 percent from 14.3 percent on June 19. Similar performance is also shown by the top 50 altcoins, thus providing metrics to declare an “alt season”. As the definition suggests, an “alt season” is declared when 75 percent of the top 50 altcoins outperform Bitcoin in terms of investment in a 90-day cycle.
The altcoin seasonal index is flashing at around 94/100, which clearly indicates altcoin dominance in the market. The index compares altcoin performance compared to Bitcoin. The closer this score is to zero, the more Bitcoin oriented the market is.
The merger controversies have not affected ETH performance, as even during low downturns, Bitcoin loses $1,000 in a day while Ethereum falls by 7 percent. The recent correction in Ethereum prices following the reveal of the CPI index has been well received by investors, with some of them even proposing new long targets for the coin. In contrast, some experts like Van De Poppe have also called for a cap on ETH since he seems to favor an altcoin breakout. According to him,“People are already flashing $300 or $600 targets for Ethereum at the first little correction… There’s literally no need for it, despite people being stuck in their bias. Because of this bias, they won’t be able to see markets objectively.”
So the latest statistics suggest that Bitcoin investors are in for a tough fight for their money as altcoins shine brightly in the market. The Terra Luna event effect seems to have faded now and it seems smart enough to favor the current altcoin context.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
