The Altcoin Season Index has been gaining attention among traders and analysts as it continues to climb. The index measures the relative performance of top cryptocurrencies against Bitcoin over a 90-day rolling window.
A score above 75 indicates an altcoin season, where the majority of altcoins outperform Bitcoin. Conversely, a score below 25 signals a strong Bitcoin season, where most altcoins underperform. The current reading of 48 places the market in a neutral zone.
The index's upward trajectory is worth monitoring as it may precede broader market rotations and capital flows from Bitcoin into smaller-cap cryptocurrencies. Several factors could be contributing to the recent uptick, including increased activity in decentralized finance protocols and renewed interest in layer-1 blockchain projects.