- Altcoins drop as BTC dominance grows, pushing the market into a sharp decline.
- The Altcoin Season Index falls to 22 from 38 last week, signaling weak momentum.
- Despite losses, VANA surged 27.84% as the altcoin market cap nears $1 trillion.
Altcoins have mirrored Bitcoin’s downtrend, suffering widespread losses. Analyst Crypto Aman highlighted the sell-off, questioning, “Altcoins are bleeding. Who is selling?” Several assets have recorded double-digit declines. AI (AI/USDT) dropped -17.24%, with XAI (XAI/USDT) declining -15.25%. EIGEN (EIGEN/USDT) fell -16.46%, while ARB (ARB/USDT) slipped -12.19%. Other notable losses include ZRO (-13.16%), MANTA (-12.23%), and STRK (-11.31%). LINK (LINK/USDT) dropped -10.28%, whereas APT (APT/USDT) and NEAR (NEAR/USDT) fell -7.90% and -8.55%, respectively.
Despite the overall negative trend, VANA (VANA/USDT) gained +27.84%, defying broader market sentiment. The continued dominance of Bitcoin and heightened market volatility have left altcoins struggling. Risk-off sentiment among investors has contributed to the losses.
Altcoin Season Index Declines, Confirming Bitcoin’s Market Strength
The CMC Altcoin Season Index has dropped to 22 out of 100, signaling a dominant Bitcoin season. Over the past week, the index fell from 38, while last month’s reading was 47. The yearly high of 87 was recorded on December 4, 2024, whereas the lowest level of 13 was seen on September 3, 2024.
Source: CMC Altcoin Season
Over the last 90 days, the altcoin market cap peaked above $2 trillion in early December before declining to nearly $1 trillion. The Altcoin Season Index initially trended upward in January but later fell below 50, reflecting Bitcoin’s increasing dominance.
With BTC’s market share, altcoins face mounting pressure. The current index of 23 shows that investor confidence is slowly diminishing regarding alternative cryptocurrencies. The recent plunge in the token has resulted in much selling pressure across the market.
Related: Bitcoin Falls Below $95K, Hits $91K Amid Market Volatility
With all this speculation lingering in the air, the pivotal question remains unavoidable. Can the market expect an altseason in 2025? This comes after investors were expecting an alternate season, but they were disappointed as it was contrary to what they expected.
The market action clearly shows how investors can change it suddenly. Despite the decline, high stakes are on a possible rebound, which would completely alternate with the previous data. Investors should take caution on whether the market will continue plummeting or rise.
