Altcoin Season Index Falls to 38, Confirming Bitcoin Season

Crypto Market in Bitcoin Season as Altcoin Season Index Falls to 38

The Altcoin Season Index, tracked by CoinMarketCap (CMC), fell to 38 at 00:30 UTC on February 5, down one point from the previous day. This confirms that the market remains in Bitcoin Season, as altcoins continue to underperform BTC over the last 90 days.

Altcoin Season Index Breakdown:
Altcoin Season (Above 75): 75% or more of the top 100 altcoins must outperform Bitcoin.
Bitcoin Season (Below 25): 25% or fewer of altcoins outperform BTC, strengthening Bitcoin’s dominance.
Current Index at 38: The market is Bitcoin-dominated, but not at extreme levels.

With altcoins struggling to gain traction, Bitcoin continues to dictate market trends.

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Why Is Bitcoin Season Continuing?

1. Bitcoin ETFs Attract Institutional Investors

• Spot Bitcoin ETFs are absorbing most institutional capital, reducing demand for altcoins.
• Bitcoin dominance remains strong, preventing an altcoin breakout.

2. Macroeconomic Uncertainty Keeping Investors Cautious

• U.S.-China trade tensions and global economic concerns are making investors risk-averse.
• Traders are sticking to BTC as a safe-haven asset, avoiding riskier altcoins.

3. Market Cycles Favor Bitcoin Before Altcoin Rallies

• Historically, altcoin seasons follow Bitcoin’s major price moves.
• If BTC stabilizes or retraces, capital may rotate into altcoins.

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Will Altcoin Season Return Soon?

Bullish Case:
If Bitcoin price consolidates, capital could flow into altcoins.
Upcoming Ethereum upgrades (like Dencun) may boost ETH and DeFi projects.
Layer 1 and AI tokens could drive new altcoin narratives.

Bearish Case:
Continued Bitcoin dominance may delay altcoin breakouts.
Macroeconomic instability could keep investors risk-averse.
If altcoins fail to show strong performance, Bitcoin Season may extend further.

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Conclusion

The Altcoin Season Index dropping to 38 confirms that Bitcoin Season is still in play, with BTC continuing to dominate the market. Altcoins remain under pressure, but a shift could occur if Bitcoin stabilizes and investors rotate capital into altcoin projects.

Until then, altcoin traders should remain cautious and watch Bitcoin’s price action closely.

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