Bitcoin gradually increases its impact on the market, so balances are changing in the crypto currency market. The latest data of the Altcoin Season Index shows that investors are predominantly turned to Bitcoin and that the Altcoins are left behind.
What is the Altcoin Season Index?
The Altcoin season index is an indicator that measures the balance of power between BTC and Altcoins in the market. This index is calculated according to the performance of the first 100 crypto currencies in the last 90 days.
If at least 75 percent of these 100 crypto currencies perform better than BTC, the subcoin season is announced. However, if this rate falls below 25 percent, it is accepted that the Bitcoin season is experienced. Since the level of the index is 38, only 38 %of the first 100 crypto currencies in the market have performed well from BTC, which shows that the market is moving mainly.
Effect of Bitcoin season on the market
The BTC season indicates that investors turn to Bitcoin in market uncertainties. This may increase BTC’s market domination, causing Altcoins to be in the background.
As a result, while investors invest in BTC, which they see as a safer asset, they can be observed in the Altcoins or a stagnant course. Capital flow throughout the market turns to BTC and investors may tend to avoid risk.
Differences between Bitcoin season and Altcoin season
The Bitcoin season and the Altcoin season are two important cycles that determine the investor movements in the market. In the Bitcoin season, the capital is shifting from Altcoins to Bitcoin, in the Altcoin season, the BTC heads from Altcoins, and the price of BTC is static, while the Altcoins experienced great price increases.
In the Bitcoin season, investors move more cautiously. While the price of the BTC rises, the altcoin market may occur. In the Altcoin Season, investors turn to Altcoins in search of high return, and rapid rise in the prices of these assets can be seen.
What should investors do?
In the Bitcoin season, it is important that investors review their portfolios. In periods of increasing market domination of the BTC, investors may need to carry out risk management correctly.
In this process, investors may turn to BTC -weighted portfolios or prepare for the future Altcoin season by investing in long -term subcoin projects. Risk management strategies should be applied considering the fluctuations in the market.
