The Altcoin Season Index continued rising, reaching its highest level in months, as many tokens hit their multi-month highs and as the Crypto Fear and Greed Index moved to the greed zone of 78.
Altcoin Season Index is Surging
The index, which looks at the performance of the top 100 coins relative to Bitcoin in the last 90 days, has continued rising. It jumped to 48 today, much higher than where it was a few weeks ago.
This rally coincided with the ongoing rally of most altcoins. NEAR Protocol (CRYPTO: NEAR) token has jumped by 50% in the last seven days. Tezos (CRYPTO: XTZ) jumped by 48%, while Arbitrum (CRYPTO: ARB), Uniswap (CRYPTO: UNI), Ethena (CRYPTO: ENA), and Zcash (CRYPTO: ZEC) have soared by over 40% in this period.
On the other hand, Bitcoin (CRYPTO: BTC) has remained within a narrow range in the past few weeks. While it jumped to $81,503 today, it remains slightly below this month’s high of $82,135.
Most altcoins, including large names like Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) have jumped by double digits from their lowest levels this year.
The ongoing rebound has coincided with the rising Fear and Greed Index, which has remained in the greed zone in the past few weeks. It rose to 74 on Saturday and is nearing the extreme greed area. In most cases, crypto prices do well when there is a sense of greed in the market.
Bitcoin Rebound Has Boosted Altcoins
One reason for the rally is that investors are buying the dip as most of them plunged by double digits from their highest levels this year. The dip-buying is also happening after Bitcoin rebounded following the surge in US debt, which crossed the $40 trillion mark in July.
Bitcoin is often seen as a safe-haven asset because of its strong tokenomics, which includes a supply cap of 21 million coins. In most cases, altcoins tend to do well when Bitcoin is rising and vice versa.
At the same time, there are signs that demand for altcoins is rising in the United States. SoSoValue data shows that spot Solana ETFs have had over $28 million in inflows this year. Similarly, spot Ethereum ETFs have added $187 million, while XRP has added $41 million. ETF inflows are signs that investors expect them to keep rising.
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