- Altcoin season is here, as more tokens have outperformed BTC in the past 90 days.
- The altcoin rally had more room for growth, but analysts remain cautious.
The much-awaited altcoin season is here after strengthening into December.
According to Blockchain Center data, the altcoin season index reading hit a 12-month high of 82, reinforcing that it was a firm ‘alt season’ and not Bitcoin [BTC].
Source: Blockchain Center
Top gainers – HBAR, XRP, DOGE
The elevated reading followed massive pumps on top tokens like Ripple [XRP], Hedera [HBAR], Stellar [XLM], and Dogecoin [DOGE] outperformed the king coin.
In the past 90 days, HBAR logged over 600% gains, while XLM and XRP followed closely at 515% and 402%. But Ethereum [ETH] and Binance [BNB] lagged behind BTC.
Source: Blockchain Center
A decline in Bitcoin dominance (BTC.D) accelerated the impressive altcoin surge in November.
On 21st November, BTC.D peaked at 60% but has since dipped to 54%, allowing the altcoin sector to grow as capital rotates from the king coin to other sectors.
In fact, the altcoin surge could extend if historical trends play out. At press time, OTHERS, which tracks the altcoin sector minus the top 10 tokens, gained ground against BTC in the past four weeks.
Source: Others/BTC, TradingView
The ratio cleared a key 50-day MA (Moving Average) but was still far from overhead resistance, which cooled off the 2017 and 2021 rallies.
If history repeats, OTHERS/BTC could target overhead resistance, allowing the sector to rally further. This could happen if BTC dominance remains muted.
However, CryptoQuant founder, Ki Young Ju, cautioned that with more ETF players and more institutions on BTC, the historical capital rotation to altcoins may not play out.
“This alt season won’t be what you expected. It’s going to be weird and challenging. Only a chosen few will win the game. Market sentiment is good, but there isn’t much fresh liquidity.”
That said, analysts have warned of a possible sell-the-news event during Trump’s inauguration in January 2025. If so, re-adjusting risk management before the event to preserve capital could be crucial.
