The Altcoin Season Index Hit 60 on November 28, Signaling a Potential Bull Run

The Altcoin Season Index, tracked by CoinMarketCap, hit 60 on November 28. While slightly lower than the previous day's 61, the market remains firmly in altcoin season

The Altcoin Season Index, a metric that gauges the collective performance of altcoins relative to Bitcoin over a rolling 90-day period, stood at 60 on November 28, according to data from CoinMarketCap. This reading indicates that, over the past 90 days, 75% of the top 100 coins, excluding stablecoins and wrapped tokens, have outperformed BTC.

The index, which is updated daily by CoinMarketCap (CMC), serves as a useful barometer for the shifting dynamics between Bitcoin and altcoins. Historically, sustained periods of altcoin outperformance have coincided with phases of retail-driven market exuberance, often signaling a later stage in the bull cycle.

As highlighted by the recent CryptoQuant analysis, the strength of the Bitcoin rally, fueled by institutional demand and exchange-traded funds (ETFs), could present a double-edged sword for the altcoin market. While ETFs may provide a convenient entry point for institutions into the crypto space, their preference for major altcoins may limit liquidity for smaller altcoins, making it harder for them to reach new highs.

Several experts have pointed to the role of fresh capital and exchange activity in driving altcoin performance. In a November 27 post, CryptoQuant lead researcher Ki Young Ju highlighted the flow of Bitcoin capital and its impact on the altcoin market.

Ju's analysis suggests that while institutions may enter the altcoin market through ETFs, their involvement is largely limited to major altcoins. In the absence of institutional capital, smaller projects that rely solely on retail traders and exchange activity face challenges in reaching new highs.

According to Ju, sustained capital inflows into crypto exchanges are crucial for altcoins to reach new highs. Without fresh capital entering the exchanges, altcoins may struggle to generate the momentum needed to follow Bitcoin's rally.

To achieve this, Ju emphasizes the need for altcoins to focus on developing real-world use cases that can independently attract new capital, rather than simply riding on Bitcoin's coattails. The growth of trends like Decentralized Physical Infrastructure Networks (DePIN) could present a strategic shift in this direction.

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