The long-awaited altcoin season is still out of reach, as the Crypto Fear and Greed Index remains in the "fear" zone, while Bitcoin dominance continues to rise.
The altcoin season index is still in the red zone.
* CMC data showed that the closely monitored altcoin season index has dropped to 21, after being at 55 in July of this year.
* This decline occurred as most altcoins continued to underperform compared to Bitcoin (BTC) during the current cryptocurrency market crash.
* Among the altcoins that have declined the most in the past three months: Double Zero, Story, Celestia, Ethena, Pudgy Penguins, Cronos, Aptos, and Arbitrum. All of these coins have dropped by more than 60% during this period.
Bitcoin dominance continues to rise.
* With the decline of altcoins, the Bitcoin Dominance Index continued to rise, increasing from a low of 37% in January to 58% today.
* In contrast, Ethereum Dominance has decreased to 11%, after reaching its highest level this year at 20%.
* The main reason for the delay: The primary reason for the delay in the altcoin season is that Bitcoin has entered a correction phase, having dropped by dozens of percentage points from its all-time high of $126,200 this year to $89,000 currently. Altcoins typically perform well when Bitcoin is in a strong uptrend.
The fear and greed index is in the "fear" zone.
* The market is dominated by a sense of fear, especially after the major liquidation event that occurred on October 10, which wiped out more than $20 billion from the market.
* Since then, investors have significantly leaned toward reducing leverage, with open interest in futures contracts dropping from $225 billion in October to $122 billion currently.
* Funding rates for all coins have also declined, and the Crypto Fear and Greed Index has moved to 21 (indicating fear).
* Many investors remain cautious about altcoins, especially after Kevin O'Leary warned that most altcoins are worthless, and that only Bitcoin and Ethereum will stand the test of time. Data has already shown that most meme coins, such as Shiba Inu and Pepe, have declined sharply in recent months.
Potential positive signs to boost the market
Despite the negative sentiment, there are still some positive signs that could help support the cryptocurrency market:
* The altcoin season often appears when the altcoin season index is in the deep red zone.
* The altcoin season usually occurs when the fear and greed index is in the "fear" zone.
* The cryptocurrency market may receive a boost from the upcoming Federal Reserve decision on interest rates, as officials expect a rate cut.
* A "Santa Claus rally" is likely to happen that boosts stocks and cryptocurrencies.
