Bit coins have set a new all-time high this week, and alt coins have also surged recently. Despite the record-breaking prices of Bit coins, the leading crypto currency has begun to lose its market dominance.
This change has sparked interest among investors in the upcoming alt coin season, as alt coins have gained attention.
The alt season is not far away
Crypto analyst Milkybull Crypto emphasized that the Bit coin dominance index is decreasing and is approaching the MACD (Moving Average Convergence Divergence) crossover point. Historically, this has often been seen as an important indicator of the alt coin season.
According to the analyst, the post-election sentiment is driving this change, which has historically been a catalyst for an alt coin rally. These potential market condition changes could lead to a stage where alt coins outperform Bit coin in terms of growth.
Similarly, analyst IncomeSharks suggested that the dominance of Bit coin indicates a momentum shift towards alt coins. IncomeSharks recommends that investors "buy and hold" alt coins during November, and expects them to continue to profit as the month progresses.
This analysis is in line with the view that an alt coin season that could start at the end of this month, as investors seek diversification from Bit coin. Therefore, investors looking to maximize their exposure to alt coins may have to wait until confirmation arrives.
The alt coin index is still at 40... but it's increasing
The alt coin season index reflects that Bit coin's dominance is weakening, but has not yet completely disappeared. For the alt season to officially begin, 75% of the top 50 alt coins must outperform Bit coin. This criterion requires 33 of these alt coins to show stronger growth than BTC, confirming the arrival of this season.
Currently, only 19 alt coins are outperforming the profits of Bit coin, indicating that the alt season has not yet fully materialized. As this number increases, it will signal a clear change. However, for now, Bit coin's influence is still maintained, delaying the start of a strong alt coin rally.
If institutional investors' interest in Bit coin increases, BTC's dominance could be strengthened, which could delay the alt coin season until 2025. The increase in Bit coin-centric investment could extend Bit coin's lead and limit the growth of alt coins until favorable conditions for alternative assets are formed.
