Bitcoin Dominance Strengthens as Altcoin Season Index Hits New Low

OnChainSleuth · 2026-01-05T13:48:13+00:00

The cryptocurrency market is seeing a shift as Bitcoin regains dominance, with the Altcoin Season Index dropping to 25, indicating most altcoins have underperformed Bitcoin recently. This reflects changing investor sentiment and market dynamics.

OnChainSleuth

2026-01-05 13:48:13

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The cryptocurrency market landscape is shifting noticeably, with Bitcoin reasserting its dominance as altcoin momentum falters. According to recent data tracked by CoinMarketCap and reported by BlockBeats on November 23, the Altcoin Season Index has slipped below the 25 mark—a significant pullback from its peak of 78 reached on September 20. The weekly average stands at approximately 31, indicating a steady weakening trend.

Understanding the Altcoin Season Index Decline

The Altcoin Season Index serves as a dynamic gauge for evaluating market conditions by measuring how many of the top 100 cryptocurrencies by market capitalization have outperformed Bitcoin over the preceding 90-day window. When the index climbs, it signals that alternative coins are gaining ground; conversely, a declining index reveals that Bitcoin’s performance is overshadowing most altcoins in the market.

With the index now hovering around 25, this reveals that roughly one-quarter of the leading altcoins have managed to gain advantage over Bitcoin during the past three months. This represents a marked departure from September’s momentum, when the index reached as high as 78—a period that would have indicated widespread altcoin strength across the top 100 tokens.

What This Means for Market Structure

The current reading underscores a fundamental shift in market dynamics. Bitcoin’s resurgence in dominance suggests that investor sentiment has rotated back toward the largest cryptocurrency, potentially at the expense of alternative projects. This cyclical pattern is typical in crypto markets, where periods of altcoin outperformance eventually give way to Bitcoin’s reassertion of leadership.

The sustained weakness in the Altcoin Season Index serves as a real-time indicator that most major altcoins are struggling to maintain relative strength against Bitcoin. For traders and market participants, this metric provides crucial context for portfolio positioning and market timing decisions.

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