The situation in the crypto markets has gotten a little worse today. At press time, the price of Bitcoin and Ethereum is $19,135 and $1,267 respectively, while the total value of the crypto market is just $908 billion.
The market as a whole is moving in the same direction as Bitcoin. This is quite normal: altcoins follow their lead. But could this trend be reversed anytime soon?
Could Altcoin Season happen anytime soon?
Currently, the Altcoin Season Index is hovering around 57. Traditionally, there is a “Bitcoin season” when this value drops below 25. On the other hand, going above 75 is called Altcoin season. Moreover, the closer the value is to 0, the higher the profitability of Bitcoin investments compared to altcoin investments.
An Altcoin season usually occurs when 75% of the top 50 cryptocurrencies outperform Bitcoin in the past 90 days. For them to perform better, purchasing interest needs to increase. But lately, this is missing on the market.
CoinShares’ latest weekly report has exposed the lackluster interest from institutional investors. As shown below, Binance’s native BNB token registered $0.5 million worth of outflows last week. Solana and XRP experienced a similar situation, posting negative flows of $0.2 million and $0.1 million respectively. In fact, institutions also gave up their Ethereum, as the weekly flow of the largest altcoin remained at -2.2 million.
However, regarding Bitcoin, the trend was completely opposite. Institutions collectively accumulated $11.7 million worth of BTC last week.
Clearly, institutions have cut off interest in altcoins. And if said trend continues, we may not get an alt season anytime soon.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.