Bitget Launches Altcoin Season Index as Key Indicator for Assessing the Bull Market

The Bitget Altcoin Season Index is a real-time index used to determine if the crypto market is currently in an altcoin-dominated season. This index tracks the performance of the top 100 altcoins over the past 90 days relative to Bitcoin and provides detailed charts and indicators to monitor market trends and altcoin market cap share. The tool aims to help users assess whether the market focus has shifted toward altcoins or remains centered on Bitcoin by analyzing historical price data and market trends.

About Bitget Altcoin Season Index

In recent years, the dynamics of altseason have evolved, with factors such as stablecoin liquidity and market innovations reshaping its patterns. In December 2024, the crypto market became excited by the possibility of Trump returning to the presidency, potentially leading to a more crypto-friendly stance in the U.S. This major development occurred a few months after the fourth Bitcoin halving and the subsequent approval of Bitcoin and Ethereum spot ETFs, when mainstream investors had already started viewing cryptocurrency as a viable investment asset. Global investors are now anticipating the arrival of the next altseason, a shift driven by institutional capital flowing into altcoins and new market participants exploring crypto investments. Altcoin seasons are typically accompanied by a decline in Bitcoin dominance, increased altcoin trading activity, and intensified retail speculation.

As a result, understanding the altseason is crucial for maximizing opportunities and managing associated risks. The Bitget Altcoin Season Index helps by tracking Bitcoin's performance against the top 100 altcoins over a 90-day period. By comparing performance, it allows investors to determine the right time to buy altcoins while smoothing out short-term volatility and providing a longer-term market perspective.

Meanwhile, investors can also use the Altseason Index to predict the start of the altseason. Monitoring the performance and market cap of individual altcoins can be challenging, but the Altseason Index consolidates the top-performing altcoins into one trend index, making it easier for investors to spot the optimal time to buy altcoins for profit.

How the Altcoin Season Index works

According to the index's definition, the altseason begins when 75% of the top 100 altcoins outperform Bitcoin. This typically happens during bull markets. The chart below shows the performance of altcoins from October 15, 2024, to January 13, 2025 (90 days).

As shown in the chart, from October 15, 2024, to January 13, 2025, the index only briefly exceeded 75, mostly fluctuating between 25 and 75. This suggests that the market is still far from entering altseason, as 75% of the altcoins need to consistently outperform Bitcoin and remain above the 75 threshold for a period of time before altseason truly begins.

How to interpret the Altcoin Season Index

The Altcoin Season Index includes a rainbow linear indicator, which shows the current phase of the cryptocurrency market. The left end of the indicator is green, the right end is red, and the middle part falls within the green-orange zone.

When the index value tilts to the left, it indicates Bitcoin season. When it tilts to the right, it signals altseason. The value is derived by comparing the 90-day returns of all altcoins with Bitcoin's returns.

When the index value is between 25 and 70, it falls into the green-orange zone, indicating that Bitcoin and altcoins are performing similarly.

As of January 13, 2025, the Altcoin Season Index stands at 41, suggesting that the cryptocurrency market is not currently in an altcoin-dominated phase.

New drivers of Altseason

It's important to note that the arrival of altseason can be predicted through several market changes that investors can monitor for early positioning, including:

1. Stablecoin liquidity and institutional capital are now the primary drivers of altseason.

2. Ethereum's performance is often a precursor to broader altcoin gains.

3. Monitoring Bitcoin's dominance and the altseason index provides valuable signals for traders.

4. Specific industry narratives, such as AI and GameFi, are reshaping the growth potential of altcoins.

5. Regulatory clarity remains a key factor in sustaining altcoin momentum.

This evolution marks a maturing market where altcoins thrive on innovation and utility, rather than speculative hype.

Conclusion

This article explores the key aspects of the Bitget Altcoin Season Index, which serves as a valuable tool for investors to understand which altcoins are worth investing in. While the index should not be the sole basis for investment decisions, it provides useful insights.

By learning how to interpret the altseason index data, investors can seize profit opportunities. However, due to market volatility and unpredictability during such periods, it's best to combine this with risk management strategies, such as setting stop-losses and using appropriate leverage.

Investors should also prioritize risk management principles and strive to maintain a comprehensive view of market conditions. The index only tracks the performance of the top 100 altcoins and does not consider lesser-known altcoins that might also offer profitable opportunities.