VanEck The recent rise in Altcoin Season Index (which jumped 53 percent in 30 days) could indicate future gains for Bitcoin.
According to the firm’s head of digital assets research, Matthew Sigel, this level has historically preceded positive returns for Bitcoin (BTC) across one-, three-, and six-month timeframes.
The index compares the performance of 50 cryptocurrencies based on market cap against Bitcoin during the 90-day period. It is considered an indicator when 75% or more of the tokens outperform BTC. This excludes stablecoins as well as asset-backed currencies. “alt season.”
Sigel pointed out that Bitcoin has a tendency to increase by an average 10% one month following the index exceeding 60 points. The average return is tripled over three months. Six months can see an increase of 73%.
Bitcoin’s historic performance is a source of optimism for BTC holders, but it also means gains for those who hold altcoins. Sigel explained how Bitcoin drives altcoin price higher. This creates a feedback cycle that raises BTC until BTC reaches the peak of its cycles.
Hedera’s (HBAR), with a gain of 450%, was the most successful altcoin in the last 90 days. Ethena’s ENA fared in second, with 342% returns, and Stellar (XLM) soared nearly 326% in the same period.
‘Dino coins’ lead the charge
It is important to note that the word “you” means a person. crypto market’s average performance in the past 90 days was 90% upside, while BTC price hiked 66.5% in the same period.
The “store of value”Litecoin and XRP (which are older generation crypto) led with average gains of 212%. They are often referred to by their older names. “dino coins.”
Meanwhile, tokens issued by centralized exchanges came in second, with an average return of 190%, followed by memecoins’ nearly 180% gains.
The tokens associated with smart contract infrastructures increased by 156.5%, and tokens for protocols that develop real-world assets rose by 171%.
The tokens of decentralized apps prices have increased 106%, despite the fact that they are part of the sectors in crypto which performed above average.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
