The anticipated altcoin season has made a comeback as we enter December with renewed vigor.
As per data from Blockchain Center, the altcoin season index surged to a 12-month peak of 82, confirming a robust ‘alt season’ distinct from Bitcoin [BTC].
Key Performers – HBAR, XRP, DOGE
The spike in the index was driven by substantial surges in prominent cryptocurrencies like Ripple [XRP], Hedera [HBAR], Stellar [XLM], and Dogecoin [DOGE] outpacing the dominant Bitcoin.
Over the last 90 days, HBAR posted impressive gains of over 600%, with XLM and XRP not far behind at 515% and 402%, respectively. Meanwhile, Ethereum [ETH] and Binance [BNB] were trailing behind BTC.
The decrease in Bitcoin’s dominance (BTC.D) has propelled the remarkable surge in altcoins during November.
On November 21st, BTC.D hit a high of 60% before dropping to 54%, facilitating growth in the altcoin market as funds flowed from Bitcoin to other sectors.
Currently, OTHERS, monitoring the performance of altcoins excluding the top 10 tokens, has been gaining ground against BTC over the last four weeks.
Although the ratio surpassed a crucial 50-day MA (Moving Average), it remains below overhead resistance, a factor that tempered the rallies seen in 2017 and 2021.
If historical trends repeat, OTHERS/BTC could aim for overhead resistance, potentially driving the sector’s growth further should Bitcoin dominance stay subdued.
However, Ki Young Ju, the founder of CryptoQuant, cautioned that the influx of more ETF players and institutions into Bitcoin could disrupt the historical flow of capital towards altcoins.
“This alt season won’t pan out as expected. It will be unconventional and demanding, with only a select few emerging victorious. Market sentiment looks positive, but fresh liquidity is limited.”
In light of this, experts have raised concerns about a probable sell-off event coinciding with Trump’s inauguration in January 2025. Hence, ensuring risk management adjustments before the event could be critical for capital preservation.