Bitcoin's Grip on Crypto Market Weakens as Altcoin Season Looms
The crypto market is showing signs of 'altcoin season', where smaller altcoins outperform Bitcoin. The Bitcoin Dominance metric, which measures the percentage of the total market cap held by Bitcoin, has dropped below 60%. Historically, this threshold marks a shift in investor behavior, with altcoins gaining ground at a faster clip than Bitcoin.
Over the past five years, the Bitcoin Dominance metric has ranged between 40% and 65%, but recently it's been stuck in a rangebound period between 58% and 62%. If the metric dips below 60% for a sustained period, it will signal that altcoins are gaining traction.
The top performers over the past 90 days include Zcash (ZEC), Uniswap (UNI), Arbitrum (ARB), NEAR Protocol (NEAR), and Venice (VVV). These coins have seen significant gains, with some up by over 200%. In comparison, Bitcoin is only up 40%.
While the Bitcoin Dominance metric is a key indicator of altcoin season, it's not the only factor to consider. The CMC Altcoin Season Index looks at the performance of the top 100 cryptocurrencies and measures how many have outperformed Bitcoin. Currently, this index is at 50, indicating that roughly half of all cryptos are beating Bitcoin.