Journalist
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Key Takeaways
Are we in a full-blown altcoin season?
Altcoins are rallying laborious, however market froth is lacking, making a divergence from previous seasons.
Are altcoins in danger?
The rally is pushed by speculative flows, leaving altcoins uncovered to post-FOMC swings.
September has formally changed into “altcoin season.” Billions have poured into the house, pushing TOTAL3 (market cap ex-BTC/ETH) to a document $1.16 trillion, now representing roughly 28% of the full crypto market.
The Altcoin Season Index has reacted sharply. It surged to a cycle excessive of 80, that means 40 out of the highest 50 altcoins outperformed Bitcoin [BTC] during the last 90 days, with Pudgy Penguins [PENGU] main the pack.
And but, the froth is lacking. The Worry and Greed Index is exhibiting no euphoria, marking a transparent divergence from earlier alt rallies.
Merely put, merchants could possibly be studying a “pump-and-dump” cycle as an alt season.
Supply: CoinMarketCap
Traditionally, alt rallies have been accompanied by frothy sentiment.
Over the last alt seasons (January and December 2024), Worry and Greed hit “excessive greed” because the Altcoin Season Index pushed near 85. Again then, speculative rotation and market euphoria have been working in sync.
The SOL/BTC ratio backed this up, topping round 0.03 and chopping in that vary all yr. Now, the ratio is sort of 30% decrease, even with a full-blown “alt season,” signaling rotation with out the same old market froth.
