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Altcoins Lose Strength: Seasonality Index Shows Retreat to 17 in Latest Reading
The Altcoin Season Index showed a new decline at the end of December, marking 17 points according to CoinMarketCap data. This drop represented a deterioration compared to the previous day, when the indicator was at 18, signaling a weakening in the performance of altcoins against Bitcoin.
What the Index Reveals
This indicator tracks the behavior of the top 100 traded altcoins, comparing their performance with Bitcoin over a 90-day period. The metric provides a clear view of when the altcoin market is in (altcoin season) or in a downturn, serving as a compass for traders and investors to monitor market cycles.
Historical Context and Perspective
To gauge the current situation, it is important to note that the Altcoin Season Index reached its peak of 78 on September 20, demonstrating a significant decrease since that period. In this reading on December 26, only about 17 projects in the altcoin portfolio managed to outperform Bitcoin in the same timeframe, highlighting a challenging scenario for the segment.
The index’s trajectory reflects the volatile dynamics of crypto markets at the year’s end, with altcoins facing greater pressure compared to major assets.