Bitcoin Price Rise Has Buried Altcoins
Bitcoin started off on the wrong foot this year 2021, falling from 46,200 to 32,900 dollars at its lowest point during January, the month that closed 16.77% down.
But during February the story has been different: with about 14% upturn, has regained an exchange value close to $44,000 per unit and, with it, the leadership of the cryptocurrency market.
The landscape has changed a lot in a matter of a month, if we compare the performance of bitcoin (BTC) with that of the main cryptocurrencies. The so-called altcoins they were showing strong dominance about two weeks ago. The “season of altcoins» in full, as reflects blockchaincenter.netwhich tracks this index.
The term known as altseason is nothing more than a moment in which the market is dominated by the performance of the altcoins (currencies other than bitcoin). The first big cases were in mid-2017 and early 2018. Right before and after the bull run where BTC set the first big all-time high (ATH) in price: $20,000 at the time.
In both cases, it was months of altcoin market dominancesomething that happened again between April and June 2021, just before the new ATH of the cryptocurrency, which approached 70,000 dollars per unit.
When is (or isn’t) altcoin season?
Now the situation is different: the season index altcoins (or altseason index) went from 78 at a peak on January 17 to 43. For the season to be considered favoring the other coins, the index must be above number 75, as measured by blockchaincenter.net.
This index measures a group of currencies considered relevant to the market. Not the 17,000 plus in existence. Specifically, the top 50 by market capitalization are taken into account, behind BTC. Nor does it include the stablecoinswhose price is subject to that of fiat currencies such as the dollar.
This indicator takes into account the percentage performance of those cryptocurrencies compared to bitcoin for a period of three months. When in that period BTC is outperformed by 75% of that top 50, then there is altseason. Right now, in that range, only 43% of coins have outperformed bitcoin.
Buried in the middle of spring?
If we reduce it to a shorter term (one month), the dominance of the first cryptocurrency in history is overwhelming. Only 20% (10 coins) have outperformed over 30 days, despite the entire market looking bright green today.
It’s true. The entire cryptocurrency market is currently in the green. The main currencies have accompanied the upward movement of bitcoin in recent days, with which BTC recovered much of what was lost in January. It is not that bitcoin is winning and the rest losing.
In the field of cryptocurrency markets, everyone seems to be enjoying spring. But although green is the reigning color, some trees flower more than others. Bitcoin is one of them, surpassed by just a fraction of the most representative of the ecosystem: DOGE, Shiba Inu or Ripple XRPfor example.