Bitcoin dominance hits 6-month lows as metric proclaims new 'alt season.'
Over 75 per cent of top 50 altcoins outperform Bitcoin despite the chaos caused by the Terra-Luna crash
By Shashank Bhardwaj
Bitcoin is in tough competition from altcoins as the latest data suggests an 'alt season' in the play. The Bitcoin market cap has fallen to around 41 per cent, which is the lowest since January this year. The last six months' data suggest that altcoins have become a better investment than Bitcoin. Even after hitting a fresh high since the crash in June, Bitcoin is outrun by coins like Ethereum.
Despite the terrible run by Terra Luna, altcoins have managed to perform a rally in recent months. Ethereum’s market cap has risen to 19 per cent from 14.3 per cent on June 19. Similar performance is shown by the top 50 altcoins as well, thus making metrics to declare an 'alt season'. As the definition suggests, an 'alt season' is declared when 75 per cent of the top 50 altcoins perform better than Bitcoin in terms of investment for a 90-day cycle.
The altcoin season index flashes at around 94/100, which clearly indicates altcoin dominance in the market. The index compares altcoin performance as compared to Bitcoin. The closer this score is to zero, the more the Bitcoin-oriented market is.
The merge controversies have not affected ETH performance as even during lows, Bitcoin is shedding $1000 in a day while Ethereum falls by 7 per cent. The recent correction in Ethereum prices after the CPI index revelation has been taken well by the investors as some of them even suggest new long targets for the coin. In contrast, some experts like Van De Poppe have also called for a constraint action on ETH since he seems to be favouring a breakout for the altcoin. According to him,"People already flashing targets of $300 or $600 for Ethereum on the first slight correction…There's literally no need for that, despite the fact that people are heavily stuck in their bias. Due to that bias, they won't be able to watch markets objectively."
So, the recent statistics suggest that Bitcoin investors are getting a tough run for their money as the altcoins shine brightly in the market. The Terra Luna incident effect seems to have faded now, and it seems smart enough to favour the current altcoin context.
Shashank is founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
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