Crypto Market Remains in ‘Bitcoin Season’ as ‘Altcoin Season’ Drought Hits Record Two-Year Mark

According to information, the cryptocurrency ecosystem has endured its longest stretch with out an altcoin season. So far, it has been greater than two years with out an altcoin season, and there have been no alerts indicating one would possibly emerge.

Altcoin Season Eludes Cryptocurrency Market for two Years

Recently, social media and cryptocurrency-related boards have been abuzz with discussions about an “altcoin season” and the unprecedented length with out one. Essentially, an altcoin season is a interval within the cryptocurrency market when the costs of other cryptocurrencies, often known as altcoins, surge compared to bitcoin (BTC) for a number of weeks or months. The Altcoin Season Index, out there on blockchaincenter.web, notes that if 75% of the highest 50 cash carry out higher than bitcoin over the past season (90 days), it’s thought of an “altcoin season.”

The index at the moment signifies that we’re in a “bitcoin season,” a state that has persevered since not less than May 2021. Some market observers imagine an altcoin season might have occurred from late 2020 to November 2021. Regardless, it has been roughly two years because the final altcoin season. The most vital altcoin season to this point started within the second half of 2017 and ended within the first quarter of 2018. As of now, in response to the index, 75% of the highest 50 cryptocurrency tokens are underperforming in comparison with bitcoin.

At press time, the cryptocurrency economic system is valued at $1.19 trillion, with bitcoin (BTC) accounting for 49.9% of that worth and ethereum (ETH) comprising 19%. Data from cryptobubbles.web reveals that many altcoins have seen important features over the previous 24 hours, and the 30-day metrics spotlight a number of leaders. Compound (COMP) has risen 153% within the final month, whereas bitcoin money (BCH) has jumped 163% increased towards the U.S. greenback. FTX’s FTT has elevated 77% in 30 days, and PEPE has gained 63%.

Although a big variety of tokens have outperformed bitcoin (BTC) over the previous month, this has not triggered any indicators of an impending altcoin season, the place different cryptocurrencies would carry out higher than the market chief. A possible impediment to an altcoin season is the current crackdown on the cryptocurrency business by the U.S. Securities and Exchange Commission (SEC) and different U.S. regulators. To date, the SEC has classified greater than two dozen different cryptocurrencies as unregistered securities.

The U.S. regulator considers these tokens to be funding contracts that promise future rewards and are centralized by issuance and growth actions. However, BTC has not been categorized on this approach. It is broadly accepted that BTC is just not a safety however moderately a broadly acknowledged commodity. Even ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been labeled a safety by New York legal professional common Letitia James in a lawsuit towards Kucoin.

“The petition argues that ETH, identical to LUNA and UST, is a speculative asset that depends on the efforts of third-party builders to be able to present revenue to the holders of ETH,” James mentioned in a court docket submitting in March.

Will the extended absence of an altcoin season influence the long-term prospects of other cryptocurrencies? Share your ideas and opinions about this topic within the feedback part beneath.