Summary:
Altcoin season index hits a 12-month high of 82, signaling strong altcoin performance.
HBAR, XRP, and DOGE lead the gains, with HBAR soaring 600% in 90 days.
Bitcoin dominance has dropped from 60% to 54%, boosting altcoin growth.
Historical trends suggest the altcoin rally could continue if BTC dominance remains low.
Warning of a potential sell-the-news event during Trumpâs inauguration in January 2025.
Altcoin season is officially upon us, with the altcoin season index showing a 12-month high of 82, indicating strong momentum among large and mid-cap altcoins. This surge comes as more tokens have significantly outperformed Bitcoin (BTC) over the past 90 days.
Top Gainers â HBAR, XRP, DOGE
The altcoin rally has been led by impressive gains from tokens such as Hedera (HBAR), Ripple (XRP), and Dogecoin (DOGE). In the past 90 days:
- HBAR has surged over 600%.
- XRP follows with a 402% increase.
- XLM recorded 515% gains.
In contrast, Ethereum (ETH) and Binance (BNB) have lagged behind Bitcoin, indicating a shift in market focus.
Source: Blockchain Center
A notable decline in Bitcoin dominance (BTC.D), which peaked at 60% on November 21 and has since dropped to 54%, has allowed altcoins to thrive as capital rotates into these assets.
Future Trends
If historical trends hold, the altcoin surge could continue. The OTHERS index, which tracks altcoins excluding the top 10, has gained ground against Bitcoin recently.
Source: Others/BTC, TradingView
CryptoQuant founder Ki Young Ju has cautioned that despite positive market sentiment, the influx of ETF players and institutions may change the dynamics of capital rotation. He stated:
âThis alt season wonât be what you expected. Itâs going to be weird and challenging. Only a chosen few will win the game.â
Analysts are also warning of a potential sell-the-news event during Trumpâs inauguration in January 2025, suggesting that risk management strategies should be in place to protect capital.
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