Index

A crypto Index provides a way for investors to gain diversified exposure to a specific basket of digital assets through a single tokenized product. These indices often track specific sectors, such as DeFi, DePIN, or RWA, and are automatically rebalanced via smart contracts. In 2026, AI-managed thematic indices have become the gold standard for passive investing, allowing users to track the "blue chips" of the Web3 economy without manual portfolio management. This tag covers index methodology, rebalancing frequency, and the benefits of diversified crypto baskets.

25276 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Japan’s Finance Minister Makes Statement on Cryptocurrencies

Japan’s Finance Minister Makes Statement on Cryptocurrencies

The post Japan’s Finance Minister Makes Statement on Cryptocurrencies appeared on BitcoinEthereumNews.com. Japanese Finance Minister Katsunobu Kato said that cryptocurrencies can be part of diversified portfolios when a suitable investment environment is provided. “Crypto assets carry the risk of high volatility, but when the right investment environment is created, they can be part of diversified investments,” Kato said in a speech at an event he attended in Tokyo. According to Bloomberg, the Minister added that the government is careful not to stifle innovation with excessive regulations. These statements are noteworthy at a time when Japan’s debt-to-GDP ratio has surpassed 200%, raising concerns. Experts believe this raises the possibility of implementing financial repression policies. Financial repression aims to reduce the government’s debt burden through methods such as inflation, low or negative real interest rates, currency depreciation, and capital controls. It is assessed that such policies could erode real returns on fixed-income investment instruments and cash, while alternative investments such as cryptocurrencies could become more attractive. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/japans-finance-minister-makes-statement-on-cryptocurrencies/

Author: BitcoinEthereumNews
Altseason odds – What next after latest round of crypto liquidations?

Altseason odds – What next after latest round of crypto liquidations?

The post Altseason odds – What next after latest round of crypto liquidations? appeared on BitcoinEthereumNews.com. Key Takeaways Altcoin Open Interest hit $61.7 billion as the Altcoin Season Index hit 61 – Its first test since early 2025. And yet, fading rotational flows raised doubts about whether this breakout signals a lasting altseason or not.  In less than 72 hours, the crypto market shed nearly $20 billion, with Bitcoin [BTC] alone losing roughly $10 billion and showing that this cycle is still very much “BTC-led.” Backing this, Bitcoin dominance [BTC.D] slipped to multi-month lows at 57%, while TOTAL2 (ex-BTC cap) fell in tandem. All in all,  rotational flows remained flat, reinforcing a risk-off market. Altcoin OI surges despite muted flows Against that backdrop, Altcoin Futures Open Interest (OI) blew up +$9.2 billion on Friday, 22 August, taking the total alt OI (red line) to a fresh all-time high of $61.7 billion. This pointed to rising leverage in alts, despite short-term chop. Source: Glassnode Typically, spikes in OI tend to track Bitcoin’s price action. However, top altcoin OI (beige bars) has steadily climbed from $20 billion in March to $60 billion by late August, adding nearly $40 billion, outperforming BTC’s $30 billion OI growth over the same period. Put simply, the altcoin market might be overheated. Traders might be front-running an altseason, but with rotational flows muted, could this feed a volatility loop instead? Altcoin index breaks out, but history urges caution High leverage across alts amplified the pullback.  Supporting this, top altcoin Ethereum [ETH] saw a nearly 4% drop in OI over the past 24 hours, aligning with its 3% price decline. All while Bitcoin contained its drop to 2.68%. Having said that, top altcoins have endured deeper hits, initially triggered by BTC’s correction, but magnified as leverage got flushed out. This dragged the Altcoin Season Index down to 56 from 61 just a day prior.…

Author: BitcoinEthereumNews
Bloomberg Senior Analyst McGlone Shares His Latest Thoughts on Bitcoin (BTC)

Bloomberg Senior Analyst McGlone Shares His Latest Thoughts on Bitcoin (BTC)

The post Bloomberg Senior Analyst McGlone Shares His Latest Thoughts on Bitcoin (BTC) appeared on BitcoinEthereumNews.com. Bloomberg Intelligence Senior Commodity Strategist Mike McGlone said that Bitcoin (BTC) has become the most important “risk appetite indicator” in the markets as uncertainty about the Fed’s interest rate policy continues. McGlone reminded that Bitcoin’s average price during the year is at $100,000, and stated that this level is likely to be tested again in the short term. According to the analyst, volatility remains low as the crypto market experiences a summer lull. However, McGlone believes that Bitcoin could pull back towards support levels once the VIX index rises above 20 again. “Even though Bitcoin, the world’s most speculative digital asset, has reached new highs, a normalization process is inevitable. There is a risk that Bitcoin will break its support level towards the end of the year,” McGlone said, arguing that extreme speculative movements are being seen in crypto assets in the current environment. McGlone stated that Bitcoin will continue to be a leading indicator of risk appetite in the long term, while pointing out that the Fed’s tight monetary policy pressure against inflation and global economic weakening could create more volatility in the markets. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/bloomberg-senior-analyst-mcglone-shares-his-latest-thoughts-on-bitcoin-btc/

Author: BitcoinEthereumNews
Strategy Buys The Bitcoin Dip: Saylor Unveils New $357 Million Purchase

Strategy Buys The Bitcoin Dip: Saylor Unveils New $357 Million Purchase

Michael Saylor’s Strategy has just announced a new Bitcoin purchase, suggesting the price dip hasn’t stopped the company from buying more. Strategy Has Made A Fresh Addition To Its Bitcoin Treasury As announced by Strategy chairman Michael Saylor in a new post on X, the company has completed a new Bitcoin acquisition involving 3,018 BTC. […]

Author: Bitcoinist
Asian markets open: Nikkei falls 1.01%, Sensex opens 0.32% lower amid tariff threats

Asian markets open: Nikkei falls 1.01%, Sensex opens 0.32% lower amid tariff threats

A stunning late-night edict from the White House has sent a powerful tremor through global markets, as US President Donald Trump abruptly fired Federal Reserve Governor Lisa Cook, amplifying a wave of fear already stoked by his escalating tariff rhetoric. The move, announced in a social media post, was seen as a direct assault on the central bank’s independence, sending investors fleeing from risk and scrambling for safety.This presidential shockwave was not an isolated event but the crescendo of an increasingly aggressive posture. Trump had already put markets on edge by threatening “200% tariffs or something” on China if it restricts rare-earth magnet exports, while also warning of new levies on any country that imposes digital taxes. The one-two punch of a destabilized Fed and renewed trade war fears proved too much for a market already on a knife’s edge.A flight to safety, a sea of redThe reaction across Asian markets on Tuesday was swift and decisive. A sea of red washed over the major bourses, with Japan’s Nikkei 225 sliding 1.01%, Hong Kong’s Hang Seng Index falling 0.44%, and mainland China’s CSI 300 dropping 0.68%, snapping a four-session winning streak. The sell-off, which followed a negative session on Wall Street, was a clear signal of investor anxiety.In a classic flight to safety, the Japanese yen gained 0.3% against the dollar, while gold strengthened to 3,372. The US dollar index, a measure of the greenback’s strength, fell 0.16% on the news of Cook’s termination, a sign of faltering confidence in the stability of US monetary policy.The tariff shadow falls on Dalal StreetNowhere was the presidential pressure felt more acutely than on Dalal Street. After kicking off the week with a rally fueled by dovish signals from the Fed, Indian equities were set for a painful reversal. A draft notice revealing Trump’s plan to slap 50 percent tariffs on Indian goods, citing New Delhi’s purchase of Russian oil, sent a chill through the market before the opening bell.At the open, the Sensex tumbled 258.52 points (0.32%) to 81,377.39, while the Nifty fell 68.25 points (0.27%) to 24,899.50. The sharp reversal wiped out the previous day’s optimism, serving as a stark reminder of how quickly the geopolitical landscape can shift under the current administration.As the dust from the overnight turmoil begins to settle, investors are now bracing for the next potential sources of volatility. All eyes are on the horizon, warily watching for bellwether Nvidia’s upcoming earnings report and the next reading of the Federal Reserve’s preferred inflation gauge, searching for a steady hand in an increasingly unsteady world.The post Asian markets open: Nikkei falls 1.01%, Sensex opens 0.32% lower amid tariff threats appeared first on Invezz

Author: Coinstats
Bitcoin fell below 110,000, 900 million funds were liquidated, is the September curse coming early?

Bitcoin fell below 110,000, 900 million funds were liquidated, is the September curse coming early?

By BitpushNews Crypto market volatility intensified on Monday. Bitcoin briefly dipped below $110,000, hitting a low of $109,324, its lowest point since early July. Ethereum also briefly fell below $4,400, a 24-hour drop of nearly 8%. This decline triggered massive liquidations across the market: According to CoinGlass data, as of this writing, 24-hour liquidations exceeded $900 million, with Ethereum longs losing approximately $322 million and Bitcoin longs $207 million. The market chain reaction was rapid, and mainstream altcoins were under pressure across the board: Solana plummeted by more than 8% in a single day, XRP fell by 6%, and small and medium-sized market capitalization tokens such as PENDLE, LDO, and PENGU recorded double-digit declines, with a single-day drop of as much as 13%. Historical Patterns: The September Curse Investors’ caution is not without reason. Statistics from CoinGlass show that September was one of the worst performing months for Bitcoin and Ethereum. The chart above compares the actual rise and fall of BTC and ETH in September from 2017 to 2024. It can be seen that: BTC performed negatively in September in most years, with only 2023 (+3.91%) and 2024 (+7.29%) recording increases. ETH’s September decline is usually larger, with 2017 (–21.65%), 2020 (–17.08%), and 2022 (–14.49%) all significantly underperforming BTC. Only in 2019 (ETH +5.72% vs BTC –13.38%), 2023 and 2024 did ETH perform better. This "September curse" has appeared in every bull market cycle. In 2013, 2017, and 2021, Bitcoin experienced a sharp pullback in September after a strong rebound in the summer. Analyst view: Short-term trend reversal Renowned analyst Benjamin Cowen noted that strong performances in July and August often reverse in September, and Bitcoin is likely to fall to its bull market support band near $110,000. He also warned that Ethereum could briefly reach a new high before falling 20-30%, and altcoins could even see declines of 30-50%. Doctor Profit, another active market analyst, offered a more pessimistic assessment from a macro and psychological perspective. He believes the Fed's September rate cut is more of a trigger for uncertainty than a positive development. Unlike the "soft landing" rate cut in 2024, this one could be a true "major turning point," triggering a simultaneous correction in both the stock and crypto markets. Regarding price, he also emphasized that the CME gap between 93k and 95k still exists on the BTC chart, where a significant amount of liquidity is concentrated, while retail investors generally enter positions in the 110k to 120k range or even higher. To flush out these "weak hands," the price must fall into their "maximum pain point range." In his strategy, he said he has gradually reduced his positions in BTC and ETH spot and turned to short-term short positions. The latest fund flow data suggests that the enthusiasm for ETFs is cooling. According to SoSoValue, last week, spot Bitcoin ETFs saw $1.17 billion in outflows, the second-largest weekly net outflow on record; spot Ethereum ETFs saw $237.7 million in outflows, the third-largest on record. This suggests that institutional funds are temporarily shifting to a wait-and-see approach, weakening support for the spot market. On-chain data also reveals structural signals. Glassnode notes that all groups of Bitcoin holders have "collectively entered the distribution phase," a consistent pattern that highlights widespread selling pressure in the market. Ethereum, after hitting a new high of $4,946, retreated, with the MVRV indicator rising to 2.15, meaning the average investor holds over 2x unrealized gains. Historically, this level is similar to December 2020 and March 2024, both of which preceded significant volatility and profit-taking. Macroeconomic factors: The Federal Reserve and interest rate risk Macroeconomic uncertainty has further exacerbated market tensions. Last Friday, Federal Reserve Chairman Powell hinted at a possible rate cut in September, spurring market optimism. However, both Cowen and Doctor Profit cautioned that rate cuts are not necessarily positive and could actually lead to an increase in long-term Treasury yields, suppressing risk assets. This is similar to the situation in September 2023, when a rate cut marked a low in the bond market, followed by a surge in yields. Furthermore, Benjamin Cowen noted that recent Producer Price Index (PPI) data showed inflation "running hotter than expected," undoubtedly adding additional pressure to the market. Without fully easing inflationary pressures, a Fed policy shift could trigger renewed market volatility. Outlook and Conclusion Looking at historical patterns, analyst opinions, and the macro environment, we can see that September put several pressures on the crypto market: Seasonal downturn – September historically averages significant losses; Macro uncertainty – the Fed’s policy could become a watershed moment for the market; Imbalanced capital structure - institutional funds outflow, retail investors chasing high prices; On-chain selling pressure intensifies - all coin holding groups enter distribution, and whale transactions disrupt the market. Although Cowen and Doctor Profit have different views on the extent of the adjustment, the consensus is that September is not the time for the bull market to turn upward, but a test that must be faced. However, from a longer-term perspective, this cleansing may also be a necessary step for the bull market to continue. The market needs to clear out overheated positions in the "greatest pain points" to make room for the next round of gains. If the cleansing is thorough, BTC may still hit new highs in subsequent cycles, and ETH's long-term upward trend will not be altered.

Author: PANews
Liquidity and economic growth can keep fueling the rally.

Liquidity and economic growth can keep fueling the rally.

A speech from Federal Reserve Chair Jerome Powell at the Fed’s Jackson Hole symposium flagged concerns over the labor market and ignited hopes for interest rate cuts. Powell commented that policy is “in restrictive territory” and that “the shifting balance of risks may warrant adjusting our policy stance” in a nod to weakness in the July payrolls report and downward revisions to job growth in prior months. The comments came just two days following the minutes of the Fed’s most recent rate-setting meeting, which took place before the July payrolls report was released. The minutes noted that the majority of FOMC members saw upside to inflation outweighing employment risk. The chart below shows prices paid (orange line) from a business survey, which tends to lead PCE inflation (blue line). The sudden pivot to concerns over the labor market is sparking hopes that rate cuts will resume. After cutting rates by 1.0% at the end of last year, the Fed has been on hold for eight months. Odds for a 0.25% rate cut at the next meeting in September jumped back to 90% following Powell’s comments. But hopes for a prolonged cutting cycle could be misplaced. In the same speech, Powell noted that the Fed’s policy framework of “flexible average inflation targeting” would be scrapped. That’s where the Fed tolerated an overshoot of its 2% inflation target if it meant supporting the labor market. That’s interesting given that core consumer inflation is running at 3.1% and looks poised to move higher. If abandoning average inflation targeting means the Fed is becoming less tolerant of inflation above the 2% target, then you wouldn’t expect a dovish tone out of the Fed. That will make upcoming inflation and payrolls reports ahead of September’s rate-setting meeting crucial datapoints for the Fed. This week, let’s look at why reducing rates could ignite the “risk-on” trade. We’ll also look at metrics pointing to a huge rebound in the average stock and why a looming commodities breakout could be the next warning on the inflation outlook. The Chart Report Liquidity and overall financial conditions play a key role in supporting speculative areas of the capital markets including stocks. Liquidity along with the cost and availability of credit are positively correlated with economic activity, and a strong economy is critical to support the corporate earnings outlook. The prospect of the Fed resuming its easing cycle while conditions are already loose is a massive tailwind for all sorts of risk assets like stocks and cryptocurrencies. The chart below shows a measure of financial conditions from the Chicago Fed district, where below zero points to looser than average conditions. Loose financial conditions are positively correlated to economic growth, and rate cuts could boost the economy at a time when growth is likely stronger than feared. While much has been made of the weak July payrolls report, other estimates of economic activity are holding up. The most recent evidence comes from S&P Global’s Flash US PMI estimate. The PMI is built off a survey of senior executives, with a reading above 50 signaling expansion while below 50 indicates contracting activity. The composite PMI came in at 55.4 which is consistent with 2.5% annualized GDP growth. The chart below breaks down activity between the manufacturing (blue line) and services (orange line) sector. While services is holding up, manufacturing activity is seeing a bounce back following the drop around the start of the trade war. A combination of falling interest rates and positive economic outlook should be driving outperformance in the average stock, and breadth metrics are confirming. While the S&P 500 and Nasdaq Composite have led the way to new record highs, the Dow Jones Industrial Average and average stock in the S&P 500 (i.e. the equal-weight RSP ETF) are moving to new highs last week. Surging breadth is also showing up in advance/decline indicators. On Friday following Powell’s Jackson Hole speech, up volume on the NYSE as a percent of all volume was over 90%. The NYSE advance/decline ratio surged to 10/1 (chart below), which is the third highest reading on the year. If the Fed resumes the rate-cutting cycle, then small-caps and the average stock in general could see a big boost. Small-caps get more of their revenues and earnings from the domestic economy, where falling rates could help the growth outlook. And approximately 33% of companies in the Russell 2000 Index of small-cap stocks are financed with floating rate debt compared to just 6% in the S&P 500. Historically, small-caps have outperformed both mid- and large-caps during the three-, six-, and 12-month periods when the Fed cuts rates using data going back to the 1950s (chart below). While the Fed is shifting focus toward risks facing the labor market, the risk of accelerating inflation continues facing investors. Core CPI has moved higher over the past two months, and various leading indicators of inflation point to further rising price levels ahead. Commodities in general have a high inflation beta, and rising inflation expectations could happen alongside a breakout in broad commodity indexes and ETFs. The chart below plots an equal weight commodity index against 10-year inflation breakeven rates. A rally in commodity prices could present another tailwind for rising inflation (and headache for central bankers).Chart from Tavi Costa on X Heard in the Hub The Traders Hub features live trade alerts, market update videos, and other educational content for members. Here’s a quick recap of recent alerts, market updates, and educational posts: Evidence that core inflation will move higher. Economic signals from the junkiest of junk bonds. Why it remains a constructive trading environment. Historic precedent shows the Fed won’t cut rates by much. New additions to the model portfolio to take advantage of strong breadth. You can follow everything we’re trading and tracking by becoming a member of the Traders Hub. By becoming a member, you will unlock all market updates and trade alerts reserved exclusively for members. 🚨Come see how we’re creating “asymmetry” in our model portfolio by letting our winners run and keeping losses small. You can join the Traders Hub with a special discount offer below: 👉You can click here to join now👈 Trade Idea Applovin Corp (APP) The stock had a huge run starting late last year that took the stock to the $500 level in February. APP is trading in a new basing pattern since then with a series of higher lows. The stock is making a smaller pullback off a recent test near prior resistance. I’m watching for over $500. Key Upcoming Data Economic Reports Earnings Reports I hope you’ve enjoyed The Market Mosaic, and please share this report with your family, friends, coworkers…or anyone that would benefit from an objective look at the stock market. Become a member of the Traders Hub to unlock access to: ✅Model Portfolio ✅Members Only Chat ✅Trade Ideas & Live Alerts ✅Mosaic Vision Market Updates + More Our model portfolio is built using a “core and explore” approach, including a Stock Trading Portfolio and ETF Investment Portfolio. Come join us over at the Hub as we seek to capitalize on stocks and ETFs that are breaking out! Come join the Hub! Disclaimer: these are not recommendations and just my thoughts and opinions…do your own due diligence! I may hold a position in the securities mentioned in this report. Liquidity and economic growth can keep fueling the rally. was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story

Author: Medium
Decoding The Crucial Neutral Market Sentiment At 48

Decoding The Crucial Neutral Market Sentiment At 48

The post Decoding The Crucial Neutral Market Sentiment At 48 appeared on BitcoinEthereumNews.com. Crypto Fear & Greed Index: Decoding The Crucial Neutral Market Sentiment At 48 Skip to content Home Crypto News Crypto Fear & Greed Index: Decoding the Crucial Neutral Market Sentiment at 48 Source: https://bitcoinworld.co.in/crypto-fear-greed-index-39/

Author: BitcoinEthereumNews
Trump Fires Fed Governor Cook Over Mortgage Fraud Allegations

Trump Fires Fed Governor Cook Over Mortgage Fraud Allegations

The post Trump Fires Fed Governor Cook Over Mortgage Fraud Allegations appeared on BitcoinEthereumNews.com. US President Donald Trump fired Federal Reserve Governor Lisa Cook on Monday, marking an unprecedented escalation in his battle with the central bank. The dismissal represents the first time a president has ousted a Fed governor in the institution’s 111-year history. Trump cited allegations of mortgage fraud against Cook as grounds for removal, though she has not been charged with wrongdoing. Central Bank Independence Under Fire The firing stems from accusations by Federal Housing Finance Agency Director Bill Pulte that Cook falsified mortgage documents. The Justice Department has indicated it will investigate these claims. Cook previously stated she would not be “bullied” into resigning over allegations made on social media. Trump’s letter to Cook questioned her “integrity” and “trustworthiness as a financial regulator.” The president claimed Cook’s alleged conduct exhibited “gross negligence in financial transactions.” Legal experts remain divided on whether Trump can remove Fed governors without a clear statutory cause. Markets reacted negatively to the announcement, with the dollar index falling 0.3% immediately after the news. Treasury yields and S&P 500 futures also declined. The unprecedented move raises questions about central bank independence, a cornerstone of effective monetary policy. Implications for Monetary Policy Cook’s removal allows Trump to reshape the Fed’s seven-member board. Another Biden appointee, Adriana Kugler, has already announced plans to vacate her position early, which could give Trump a four-person majority on the board. The timing is significant as the Fed prepares for its September 16-17 policy meeting. Chair Jerome Powell recently signaled potential rate cuts due to labor market concerns. Trump has consistently criticized the Fed for maintaining high interest rates. Cook became the first Black woman on the Fed’s Board of Governors in 2022. Her term was scheduled to run until 2038. It remains unclear whether she will challenge the dismissal in court. The…

Author: BitcoinEthereumNews
Altcoin Season Index Plunges: What This Crucial Drop to 46 Means

Altcoin Season Index Plunges: What This Crucial Drop to 46 Means

BitcoinWorld Altcoin Season Index Plunges: What This Crucial Drop to 46 Means The cryptocurrency market is a dynamic space, constantly shifting between periods of Bitcoin dominance and altcoin surges. Recently, the Altcoin Season Index has taken a notable dip, falling three points to a score of 46. This shift is sparking discussions among investors and analysts alike. What exactly does this decline signify for your crypto portfolio? Are we truly heading into a ‘Bitcoin Season’? Let’s unpack the implications of this crucial movement and understand what a score of 46 means for the future of altcoins. Understanding the Altcoin Season Index: How Is It Measured? To truly grasp the significance of the recent drop, it’s essential to understand how the Altcoin Season Index works. CoinMarketCap, a trusted name in crypto data, provides this valuable metric. It’s not just a random number; it’s a carefully calculated indicator designed to give us a snapshot of the market’s sentiment towards alternative cryptocurrencies compared to Bitcoin. The Calculation: The index evaluates the price performance of the top 100 cryptocurrencies by market capitalization. Exclusions: Stablecoins and wrapped coins are intentionally left out to ensure the index reflects true market sentiment for volatile assets. The Timeframe: Performance is measured over the past 90 days, providing a medium-term view rather than daily fluctuations. Defining a Season: An altcoin season is officially declared if 75% or more of these top 100 coins have outperformed Bitcoin. If not, it’s considered a Bitcoin season. A score closer to 100 strongly indicates an altcoin season, suggesting that a broad range of altcoins are seeing significant gains relative to Bitcoin. Conversely, a lower score points towards Bitcoin’s dominance. Why Did the Altcoin Season Index Drop to 46? The recent three-point fall in the Altcoin Season Index to 46 suggests a notable shift in market dynamics. This decline doesn’t happen in a vacuum; it reflects a period where a significant number of the top 100 altcoins have underperformed Bitcoin over the last 90 days. While the exact reasons can be multifaceted, several factors often contribute to such movements: Bitcoin’s Strength: Often, when Bitcoin experiences a strong rally, capital tends to flow from altcoins into Bitcoin, causing altcoins to lag. Macroeconomic Factors: Broader economic trends or regulatory news can impact the entire crypto market, but altcoins, being generally riskier, might see larger pullbacks. Specific Altcoin Performance: If several major altcoins within the top 100 face project-specific challenges or lack significant development news, their underperformance can collectively drag down the index. A score of 46 places us firmly outside of an ‘altcoin season’ (which requires 75 or higher). It indicates a period of relative neutrality or even slight Bitcoin dominance, where altcoins are generally struggling to keep pace. Navigating Market Shifts: What Does a 46 Mean for Your Portfolio? When the Altcoin Season Index hovers around 46, it signals a time for careful consideration rather than panic. This isn’t a strong ‘Bitcoin season’ either, as that would typically be a much lower score. Instead, it suggests a more balanced, perhaps uncertain, market environment where capital isn’t overwhelmingly favoring one side. For savvy investors, this period presents both challenges and opportunities. Re-evaluate Your Holdings: It’s a good moment to assess your altcoin positions. Are they still strong projects with solid fundamentals? Consider Diversification: While altcoins might be struggling, Bitcoin could be consolidating or preparing for its next move. A balanced portfolio can help mitigate risks. Focus on Fundamentals: During periods of uncertainty, projects with clear use cases, strong development teams, and active communities tend to weather the storm better. Risk Management: This environment underscores the importance of not over-allocating to speculative altcoins. Remember, market cycles are natural. A dip in the index doesn’t mean altcoins are doomed forever; it simply reflects the current performance trend. Understanding these trends helps you make more informed decisions. Is an Altcoin Resurgence Still Possible? Despite the recent dip in the Altcoin Season Index, the potential for an altcoin resurgence is always present in the volatile crypto market. Historically, crypto markets move in cycles, and periods of Bitcoin dominance are often followed by altcoin rallies once Bitcoin consolidates or reaches new highs. What could trigger such a shift? Bitcoin Stability: A stable Bitcoin price often allows capital to flow into altcoins as investors seek higher returns. Technological Breakthroughs: Major upgrades or significant adoption news for key altcoin projects can ignite rallies. New Narratives: Emerging trends like GameFi, NFTs, or specific Layer-2 solutions can create new interest and drive altcoin performance. While the index currently sits at 46, market sentiment can change rapidly. Staying informed about project developments and broader market trends is crucial. The crypto landscape is constantly evolving, and yesterday’s underperformers can quickly become tomorrow’s stars. In conclusion, the fall of the Altcoin Season Index to 46 is a clear indicator that altcoins are currently facing headwinds against Bitcoin. This crucial shift encourages investors to practice caution, re-evaluate their strategies, and focus on robust projects. While an altcoin season isn’t imminent based on this metric, the dynamic nature of crypto means vigilance and informed decision-making remain paramount. Keep an eye on the index and broader market signals to navigate these fascinating shifts effectively. Frequently Asked Questions About the Altcoin Season Index Q1: What exactly is the Altcoin Season Index? A1: The Altcoin Season Index is a metric provided by CoinMarketCap that indicates whether altcoins are generally outperforming Bitcoin. It’s calculated by comparing the performance of the top 100 cryptocurrencies (excluding stablecoins and wrapped coins) against Bitcoin over the past 90 days. Q2: How is an Altcoin Season officially declared? A2: An altcoin season is declared when 75% or more of the top 100 altcoins have outperformed Bitcoin during the preceding 90-day period. Otherwise, it is considered a Bitcoin season. Q3: What does a score of 46 on the Altcoin Season Index signify? A3: A score of 46 means that less than 75% of the top 100 altcoins have outperformed Bitcoin over the last 90 days. It indicates that we are currently not in an altcoin season and suggests a period of relative neutrality or slight Bitcoin dominance. Q4: Should I sell all my altcoins if the index falls? A4: Not necessarily. A falling Altcoin Season Index suggests altcoins are underperforming Bitcoin, but it doesn’t mean they won’t recover. It’s a signal to re-evaluate your portfolio, focus on strong fundamentals, and practice good risk management. Market cycles are common, and a dip can be a temporary phase. Q5: What factors can cause the Altcoin Season Index to fall? A5: The index can fall due to several reasons, including strong Bitcoin rallies that draw capital away from altcoins, broader macroeconomic uncertainties, or collective underperformance of several major altcoin projects due to lack of development or specific challenges. Did you find this analysis of the Altcoin Season Index insightful? Share this article with your fellow crypto enthusiasts and help them stay informed about crucial market trends. Your shares help our community grow! To learn more about the latest crypto market trends, explore our article on key developments shaping altcoins and Bitcoin market sentiment. This post Altcoin Season Index Plunges: What This Crucial Drop to 46 Means first appeared on BitcoinWorld and is written by Editorial Team

Author: Coinstats