RealVision’s Chief Crypto Analyst, Jamie Coutts, believes that an altcoin season might be imminent. He points out that altcoins have been trading lower since Bitcoin reached its all-time high in March.
The Bitcoin price hit an all-time high of $73,750.07 on March 14th, but it has slumped over 10% since then to $66,200.05.
In a recent X post , Coutts noted that “smaller-cap crypto assets have been taking it on the chin since the March high of this year.”
Market Update: Smaller cap #crypto assets have been taking it on the chin since March high of this year. The past 3 months have seen the Top 200 equal weight index fall 33% vs. the Market Cap index, which is down around 12%.
This is the breakdown of the 3-month sector returns… pic.twitter.com/npHS2BPoOl
— Jamie Coutts CMT (@Jamie1Coutts) June 13, 2024
Coutts referenced data from Bitformance indicating that over the past 3 months, the Top 200 Equal Weight Index, which assigns weight equally to cryptocurrencies irrespective of market cap, fell by 33%.
This contrasted with the Market Cap Index, which declined by 12%, weighting cryptocurrencies based on their market capitalization.
This decline underscores weaker performance among smaller cryptocurrencies compared to those dominating the market cap index.
More recent Bitformance data also reveals a notable shift. The percentage of altcoins in the top 200 Marketcap-Weighted Index with a higher 90-day return than BTC dropped significantly from 49% to 10% since March 14th.
This indicates that an altcoin season is currently distant. Despite this, Coutts believes altcoins may be gearing up to present “some opportunities.”
“If this is a regular mid-cycle correction we are experiencing, which I believe is likely, then expect some
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