Bitcoin’s recent price action was marked by correction from an all-time high of $108,135 reached just a week ago. While Bitcoin has largely held above the $90,000 level, the correction has seen the cryptocurrency fall to as low as $92,500 in the last 24 hours. This decline not only shook confidence in Bitcoin’s near-term trajectory, but also drew attention to the altcoin market.

Although the altcoin market also reflects this tendency after the Bitcoin price correction, many investors and analysts expect an altcoin rally soon. VanEck addressed these expectations in a sturdy declaration on the X social media platform. According to the investment company, the cryptocurrency industry is currently in the altcoin season, which began on November 27.

Altcoin season is here – VanEck

Bitcoin, the leading cryptocurrency, has had difficulty maintaining price dynamics above the $100,000 level, which raises questions about where the market may be headed. Although many Bitcoin supporters do expecting to grow again in 2025 with the incoming Trump administration in the US, other cryptocurrency analysts they are turning to the altcoin market. Interestingly, – suggest VanEck analysts that the current crypto environment may favor altcoins over Bitcoin.

Matthew Sigel, head of digital research at VanEck, discussed this phenomenon, explaining that Bitcoin’s dominance in terms of market capitalization, liquidity and volume often lays the groundwork for altcoins to outperform. According to Sigel, as capital flows into the market, risk-on sentiment tends to favor emerging cryptocurrency applications, particularly in decentralized finance, gaming and NFTs, which in turn allows the altcoin market to outperform Bitcoin.

VanEck’s altcoin season predictions were also highlighted by data from Artemis’ altcoin season index, which measures how many of the top 50 altcoins outperform Bitcoin over a 90-day period. According to this index, which ranges from 0 to 1, the altcoin season begins with a reading of 0.6. At the time of writing, the index is currently well above this level, recently reaching 0.8. This suggests that the cryptocurrency industry is currently in altcoin season, where profits made from Bitcoin will begin to flow to the top altcoins.

Divergent views on current indicators

Interestingly, Artemis’ Altcoin Season Index differs from more conventional indices such as those provided by CoinMarketCap. CoinMarketCap defines an altcoin season as a period in which 75% of the top 100 altcoins outperform Bitcoin over the last 90 days. By this measure, the index currently stands at 51, although it reached an impressive high of 87 on December 4.

Nevertheless, many market participants are anticipating an altcoin season, with many betting that many leading altcoins will outperform Bitcoin. According to the latest technical analysis conducted by cryptocurrency analyst Captain Faibik, the altcoin season has officially begun.

“Breakout of $BTC rising wedge (dominance) + retest confirmed! ✅ The #Altseason has officially begun – get ready for the ride! 🚀📈,” he said.

Featured image created with Dall.E, chart from Tradingview.com