Bitcoin is Driving the Altcoin Prices Again but is The Narrative of an ‘alt-season’ Still Alive?

PC:Pixabay

During the start of 2020, the collective crypto industry rallied significantly but a majority of the community did not entirely focus on Bitcoin since a plethora of altcoins were outperforming the largest digital asset.

The spike in valuation for some altcoins was so high that eventually, the sentiment for another ‘altcoin season‘ started to take shape in the industry.

The correlation factor of major assets such as Ethereum and Litecoin de-coupled away from Bitcoin and users started contemplating that BTC’s dominance was slowly decreasing.

However, many did not expect the crash of 12-13th March, and any signs of an alt season were left in the dust.

Recently, the industry has started to pick up a bit of pace, and Bitcoin finally breached above $7000 for the first time since the collapse. As altcoin relied heavily on Bitcoin again, were the signs giving away towards the re-birth of another alt-season speculation? Probably not.

As observed in the chart above, Weiss 50 Crypto rating excluding BTC, hasn’t been able to recapture the same level of performance as witnessed during the start of the year. After receiving a year high rating of 3305 on February 14th, the rating declined to 770 and at press time remained under the 1300 mark.

A similar picture was observed on the Mid-Cap assets chart as well. Mid-cap assets were outperforming BTC for a significant part of 2020 until the collapse, as the rating dropped from 5587 to below 2000 at the time of writing.

Although, data from Arcane suggested that small-cap assets continued to perform better than Bitcoin in the month of March. Bitcoin was down by 24.62 percent in the past month whereas, small-cap assets collectively outperformed BTC by incurring a drop of 23.19 percent throughout the period.

On the contrary to altcoins diminishing valuations, FTX’s altcoins, mid-cap, shitcoin, and Bitcoin index suggested that BTC has been the worst-performing asset since 2020. Bitcoin registered a performance index of -6.68 percent, whereas the other mentioned indices incurred better ratings.

The altcoin perpetual index was surprisingly the best performing index class with a hike of 12 percent YTD.

Analyzing both the sets of data suggested that various platforms rated the growth of Bitcoin and Altcoins with different parameters. Hence, it is not exactly clear whether altcoins are doing better or worse, but there are certainly no whiffs of an altcoin season.

Utkarsh Gupta: Professional journalist with a proven experience of working in the online media industry. Experienced in Web Content Creation, Editing, Publishing, Journalism, and Creative Writing.