Bitcoin miner could trigger the old coin season-but we are not that far yet

Bitcoin miner could trigger the old coin season-but we are not that far yet

Only 15 of the top 50 cryptocurrencies according to the market value have surpassed Bitcoin (BTC) in the past 90 days-which indicates that we are still far from the popular "Altcoin season".

The Altcoin Season Index of the Blockchain Center measures the temperature of the markets for digital assets by dividing the mood into two intoxicating modes: Bitcoin and Altcoin.

An "old coin" is regarded as a derogatory name for a large part of the cryptocurrency sector, which subtly disparages everything that is not the original digital asset.

Nevertheless, the index serves as an effective instrument to map where the heads of the investors are when it comes to diversification away from the Blue Chips.

How it works: The Altcoin season has started when more than 75 % of the top 50 cryptocurrencies (38 or more) have exceeded BTC in the last 90 days. The index filters out stable coins and asset-backed tokens such as Wrapped Bitcoin and Lido Staking Ether.

On the other hand, we are firmly in the Bitcoin season when less than 25 % of the Top 50 digital assets have exceeded BTC.

The last extended Altcoin season took place in 2021 between the end of March and the last week of June. At that time, BTC moved around $ 60,000 before it broke up by 40 % to around $ 34,000.

But the cryptoma markets tended to the Bitcoin season in July 2021 and officially joined BTC mode in August this year.

The index of the Blockchain Center recovered between the two seasons for six months-with the exception of two days in January, when the cryptoma markets briefly drove the old coin returns beyond those of Bitcoin.

The surrender of the Bitcoin miner could usher in the altcoin season

The index indicates that we are not currently coin in the season of the big orange. Nevertheless, the cryptoma markets have enjoyed more than 70 days of Bitcoin season since the beginning of February-about half of the total number of days to this day.

At the moment we are far from the Altcoin season, since only 31 % of the top 50 cryptocurrencies have exceeded BTC in the past 90 days. However, this could change quickly if the Bitcoin miners still feel the pressure of low prices and macroeconomic factors that drive the electricity costs up.

"If Miner continues to sell her BTC rewards to finance the company, it could definitely return to an Altcoin season," said Ryan Swanson, Analyst of Blockworks Research.

Considering that this does not mean that old coins can rise-you can also exceed Bitcoin in a downward trend-SWANSON explained that the Altcoin season followed historically to the Bitcoin season after an increase in the BTC price led to the fact that more capital flows into risky plants.

"However, the trend seems to change at short notice, given the special pressure on miners and the advent of 'old coins' that have their own market cycles, such as Layer 1-tokens, Ether and Solana, as well as [Decentralized Finance] offers such as Aave and Makerdao [MKR]," said Swanson.

Take a look at the latest from Blockworks Research to Status of Bitcoin mining report here.

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The contribution "Bitcoin Miners May Trigger Altcoin Season - But We’re Not There" is not a financial advice.