VanEck Predicts Potential Bitcoin Gains Following Altcoin Surge
VanEck suggests that the recent increase in the Altcoin Season Index, rising by 53% in the last 30 days to 63 points, could indicate positive outcomes for Bitcoin (BTC).
Historical Data Supports Positive Returns for Bitcoin
- Historically, when the Altcoin Season Index surpasses certain levels, Bitcoin has seen positive returns across different timeframes.
- The index monitors the performance of the top 50 cryptocurrencies against Bitcoin over the previous 90 days.
- Altcoin Season is declared when the majority of these tokens outperform BTC, excluding stablecoins and asset-backed cryptocurrencies.
Potential Bitcoin Growth Post Altcoin Surge
- On average, Bitcoin has shown a 10% increase one month after the index crosses 60 points.
- Over three months, returns typically triple, and six months often witness a substantial 73% average rise.
Impact on Altcoin Prices and Market Trends
Bitcoin’s upward movement also influences altcoin prices, creating a cycle that boosts BTC further until it reaches its peak.
According to the Altcoin Season Index, Hedera (HBAR) saw the highest performance among the top 50 altcoins in the last 90 days, with a remarkable 450% gain. Ethena’s ENA and Stellar (XLM) followed closely with returns of 342% and 326% respectively.
‘Dino Coins’ Dominate the Market
The crypto market experienced an average 90% increase in the past 90 days, with BTC rising by 66.5% during the same period.
- Coins like Litecoin (LTC) and XRP, categorized as “store of value” assets, led the market with an average gain of 212%.
- Centralized exchange tokens came in second with a 190% average return, while memecoins witnessed almost 180% gains.
- Tokens related to real-world asset projects saw a 171% increase, and those associated with smart contract infrastructures soared by 156.5%.
- Decentralized application tokens also performed well, with a 106% increase above the market average.
