Altcoins outperform BTC. Has altseason begun?
Over the past three months, BTC has gained around 40%. At the same time, 16 cryptocurrencies among the top 100 by market capitalization have risen by more than 100%.
Altseason refers to a period when most major altcoins outperform BTC. It is measured using an index that compares the performance of the 100 largest cryptocurrencies over 90 days. A reading of 75 is considered a sign of altseason.
As of September 25, the index stands at 58, compared with 23 at the beginning of the month. The indicator has risen significantly but remains below the threshold.
Some altcoins have gained more than 200% over the past 90 days. Ethereum has risen by around 70%, while several other major assets have also outperformed BTC. However, the gains remain uneven, with some cryptocurrencies showing little price movement or declining.
Altcoins have strengthened noticeably against BTC, but current indicators are still not sufficient to confirm a full-scale altseason.
Privacy transactions proposed for BTC
Researchers have proposed the Shielded Bitcoin protocol, which could enable more private transfers on the BTC network. The concept is designed to hide the sender, recipient and transaction amount without changing the blockchain's rules.
Shielded Bitcoin is proposed as an additional protocol on top of the existing network. According to its description, it would not require a hard fork or soft fork, while transaction validity would be verified using separate software.
Some data would remain public, including the transaction time, number of inputs and outputs, transaction fee and certain technical parameters. As of late September, the protocol exists only as a description, with no working implementation yet available.
Miners increased activity
Miners increased the computing power of their equipment after BTC strengthened. Mining activity reached its highest level in several months.
Miners' decisions are influenced by the cryptocurrency's price, mining profitability, electricity costs and other expenses. Under favorable conditions, participants may deploy additional equipment or increase its utilization.
Mining profitability also increased, although it varies between individual miners and depends on equipment efficiency, electricity costs and operating conditions. Changes in mining activity remain one of the indicators of the industry's condition and reflect the economic environment for BTC mining.
BTC continued to rise amid demand
BTC recovered after a decline and moved above previous levels. Analysts noted increased interest in instruments designed to benefit from a rise in cryptocurrency prices, while specialists also pointed to capital inflows into exchange-traded funds linked to digital assets.
At the same time, trading activity remains high and leverage continues to be used in the market. Market participants are discussing the possibility of further BTC gains, but no specific price targets have been established.
In the near term, cryptocurrency prices may be affected by macroeconomic data, central bank decisions and changes in market sentiment.
BTC rose to $87,000 amid mass short liquidations
BTC gained around $10,000 in three days and moved toward $87,000. The rise was accompanied by mass closures of short positions: approximately $1.1 billion worth of positions were liquidated on crypto exchanges in a single day, most of them involving bets on a decline in BTC.
Analysts note that after the liquidation wave ends, further movement will require new demand. Capital inflows into BTC exchange-traded funds remain an additional factor.
Technical indicators also improved after BTC moved above long-term moving averages. Further price dynamics will depend on demand, market activity and macroeconomic conditions.
Why does cryptocurrency disappear from a wallet?
Cryptocurrency can disappear from a wallet without the wallet itself being hacked because of permissions that users grant to smart contracts when interacting with DeFi. When swapping tokens, users confirm that a specific contract can access them, while an unlimited allowance gives the contract access to the entire balance of the respective token.
Scammers use fake websites and applications to obtain such permissions. After a user signs the transaction, the tokens can be transferred without additional confirmation.
To reduce the risk, users should check website addresses, carefully review signing requests, limit the allowance where possible and regularly revoke unnecessary permissions. Revoking an allowance requires a separate network fee.
These permissions apply to tokens and do not provide direct access to a blockchain's native cryptocurrency. Wrapped versions of assets, however, may be subject to such permissions.
