Altcoins may be primed for a significant rebound, potentially outshining Bitcoin (BTC) in the short term. According to the analytics platform Alphractal, the Altcoin Season Index has retreated to a pivotal point, signaling a potential rally for altcoins. The index, which tracks the performance of altcoins relative to BTC, has historically shown a recovery whenever it dips into this lower range.
Altcoins may stabilize and outperform Bitcoin soon!🔥
— Alphractal (@Alphractal) January 14, 2025
During Bitcoin downtrends, it's common for altcoins to drop more sharply. However, in recoveries, Bitcoin tends to recover faster than altcoins. With Bitcoin rising from 89k to 97k in the last 24 hours, the Altcoin Season… pic.twitter.com/oA7P9pgj84
Alphractal’s analysis highlighted a recent surge in Bitcoin’s price, rising from $89k to $97k in just 24 hours. This increase could provide the momentum needed for altcoins to follow suit, marking the beginning of a potential recovery phase for the broader altcoin market.
However, it’s important to note that another popular altcoin traction indicator from Blockchain Center remained neutral at press time. This suggests that the market is at a crossroads, with no clear direction between an “altcoin season” or a “Bitcoin season.” While Bitcoin currently holds the upper hand, particularly in light of potentially pro-crypto updates following Donald Trump’s inauguration on January 20th, the altcoin sector could still experience strong momentum if conditions shift.
Further clues about the potential direction of altcoins can be found in BTC and Tether’s (USDT) dominance. These indicators are inversely correlated to altcoin momentum, with a decline in BTC and USDT dominance typically signaling capital rotation into altcoins. Notably, both BTC.D (Bitcoin dominance) and USDT.D (Tether dominance) are showing signs of retreating, which could validate Alphractal’s projection of an altcoin recovery.
Looking at recent performance, altcoins like XRP and Hedera (HBAR) have outperformed Bitcoin, with XRP up 450% and HBAR surging 600% over the past 90 days, compared to Bitcoin’s 52% increase. This trend underscores the growing strength of select altcoins, positioning them as potential leaders in the coming weeks.
Also Read: Bitcoin Hits $106K, Altcoins Surge: XRP, Ethereum, and Solana Join the Bullish Rally
Altcoin enthusiasts should keep a close eye on these indicators as the market continues to evolve.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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