The CMC Altcoin Season Index has dropped to 36, signaling Bitcoin’s dominance over altcoins. While some altcoins like HYPE and XRP surged, AI tokens struggled, and market trends suggest further volatility.
The CMC Altcoin Season Index looks at how the top 100 cryptocurrencies have done over the last 90 days to figure out market trends. If 75% of these altcoins are worth more than Bitcoin, it means that altcoin season has begun.
CMC Altcoin Season Index Decline
The index hit 64 in December 2024, which meant that altcoin season had begun. But it has since gone down, staying above 40 in January and now going down even more. The fact that the measure is at 36 as of February 17 shows that Bitcoin is still the market leader.
Even though the market has gone up and down, Bitcoin has stayed strong above $96,000, which has affected the direction of the market as a whole. Even though most people still feel good, CryptoQuant expert Maartunn points out signs that the price may be going down.
Inter-exchange Flow Pulse (IFP) is a measure that shows how Bitcoin moves between derivatives and spot markets. It shows weakness, according to Maartunn. Rising derivative flows usually mean that prices are going up, but the way things are going now suggests that there will be resistance before a rise.
While altcoins have had a hard time, it’s probably because there have been so many new ones released. Too many tokens being made can lower liquidity and hurt performance generally.
Bobby Ong, co-founder of CoinGecko, said that more than 600,000 tokens were made in January. This shows how quickly investor capital can change hands and how competitive the market is getting.
Among the best-performing coins, Hyperliquid (HYPE) and Ripple (XRP) have gone up 735% and 143% in the last 90 days. But tokens tied to AI have dropped sharply, even though there is a lot of interest in the field.
RENDER (RNDR), FET (Artificial Superintelligence Alliance), and NEAR (Near Protocol) have all lost more than 40% in value during the same time period.
In the past, altcoin season has happened after Bitcoin’s consolidation or downturn. The next breakout will depend on macroeconomic factors, laws, and market trends.
