Key Takeaways
- US investment firm VanEck predicts that with 60% of the top 50 altcoins outperforming Bitcoin over the last three months, the price of BTC could be preparing for a major bull run.
- The Altcoin Season Index, which measures the percentage of altcoins that outperformed BTC over 90 days, has hit 60 – a figure correlating with favorable price performance for Bitcoin in subsequent months.
- Market analysts also support VanEck’s view as there is an increased demand for Bitcoin despite its price dropping below $95,000 this week. While there was fear, uncertainty, and doubt (FUD) among social media users, the bearish sentiment has turned into a bullish market for the flagship cryptocurrency.
- Spot Bitcoin ETFs recorded $438.5 million in inflows on December 10, 2024, with BlackRock’s IBIT receiving $295.6 million and Fidelity’s FBTC netting $210.5 million, as per data from Farside Investors.
According to a report by Wall Street asset manager and Bitcoin ETF issuer VanEck, the recent surge in the altcoin season index above 60% could point to a strong uptick in BTC prices over the coming months. While some analysts are already calling for a possible top for Bitcoin at $100,000, VanEck says that a bull run for the flagship cryptocurrency is far from over and investors could see major price movements in the first half of 2025.
Altcoin Season Index Crosses 60, Suggesting Potential Bull Run For Bitcoin In The Coming Months
The investment firm shared optimistic views on Bitcoin, linking the strong performance of altcoins to potential gains for BTC. As per its analysis, when the Altcoin Season Index surpasses 60 – indicating that over 60% of the top 50 altcoins have outperformed Bitcoin over the last 90 days – the price of BTC tends to post positive returns in the subsequent months.
The Altcoin Season Index measures the portion of the top 50 cryptocurrencies that have outperformed Bitcoin during the last 3 months. A value above 60 on the metric suggests a strong altseason, which historically correlates with favorable performances for BTC in the months after.
According to VanEck’s findings, after the index crossed the 60 mark, the average return of Bitcoin increased by 10% in 30 days, 30% in 90 days, and over 73% in 180 days. The study analyzed 61 cases while highlighting the probability of positive returns from investing in BTC, which amounted to 56.5% in one month, 59.9% in three months, and 61.1% over six months. This means that the price of Bitcoin could potentially rally to $160,000 by mid-2025.
This week was marked by strong selling pressure for altcoins after the tokens rallied following Donald Trump’s election victory. But market experts are calling this a healthy pullback as it has helped remove excess froth from the market.
$95,000 Deemed Critical Support Level For Bitcoin, But Market Demand At A High
Crypto analyst IncomeSharks reported a robust demand for BTC below the $95,000 mark, stating that prices in that zone can gain quickly. This area is now deemed as a critical support level for Bitcoin.
While no technical indicators suggest a market top, the analyst says this formation is bullish for the BTC price and the consistent buying pressure suggests strong investor confidence in further upward price movement. Interestingly, this comes amid the altcoin market booming.
Blockchain analytics firm Santiment also reported that the drop in Bitcoin’s price to $94,200 triggered a major fear, uncertainty, and doubt (FUD) scenario. Social media discussions were rife with calls for the crypto asset to plunge further to between the $80,000 and $89,000 range. The firm also noted that growing bearish sentiment is a potential bullish signal for Bitcoin.
On the other hand, spot Bitcoin exchange-traded funds (ETFs) continue to receive inflows at a strong pace. The previous day saw the exchange-traded products tracking the price of BTC record an inflow of $438.5 million, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) leading the charts by netting $295.6 million and $210.5 million in inflows, respectively.
At the time of writing, Bitcoin (BTC) is trading at $98,359 – up 2.5% in the last 24 hours.
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