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I've been looking at some data these days, and it's quite interesting. The Altcoin Season Index has just reached 27, nearly double the 14 it was in mid-December.
How to understand this index? Simply put, it shows how many of the top 100 altcoins in the past 90 days have outperformed Bitcoin. The number 27 means that more than a quarter of the top 100 altcoins are performing better.
High index → Altcoin group is strengthening → Market enters "Altcoin Season"; Low index → Bitcoin is still leading alone → Altcoins are still in hibernation. What does it mean when this number jumps from 14 to 27? Funds are moving.
There's a classic rhythm in the crypto world: Bitcoin rises first, boosting the overall market sentiment, then excess money starts flowing into altcoins. Altcoins can surge rapidly, but the risks are also significant. So, this shift is worth paying attention to.
But it must be clarified— the index is just a reference signal, not a guarantee. Sometimes, a wave of altcoin gains is just short-term rotation and doesn't necessarily indicate a true trend reversal. Don't ignore this.
If you have ideas about altcoins, consider focusing on projects with real applications and active communities. But avoid blindly chasing high prices, especially those coins with no fundamentals, purely driven by hype. The risks are too high to gamble on.