Bitcoin's dominance (BTC.D) has taken a dip, dropping over 2% in just eight hours and now resting at 59.77%, according to TradingView data reported by BlockBeats. The drop came as former President Donald Trump secured a victorious return in the U.S. election, sparking another record high for Bitcoin and fueling interest across altcoins. Many are now wondering: could this signal the start of "Altcoin Season"?
What Exactly is Altcoin Season?
Altcoin Season, or “Alts Season,” is a much-anticipated period when altcoins — all cryptocurrencies other than Bitcoin — significantly outperform Bitcoin in price gains. This phase happens as more investors shift attention and funds toward smaller-cap cryptos, allowing these assets to experience notable growth. One way to spot Altcoin Season is by looking at Bitcoin dominance (BTC.D), which measures Bitcoin's share of the overall cryptocurrency market. When Bitcoin's dominance decreases, it often suggests rising demand for altcoins as traders diversify their holdings.
Why Bitcoin Dominance Matters for Altcoin Season
Bitcoin dominance has long been a marker of Bitcoin’s central role in the crypto market. Yet, when BTC.D takes a downward turn, it typically reflects a growing interest in altcoins. Essentially, as Bitcoin's dominance dips, it leaves room for other cryptocurrencies to rally. This shift often marks the start of Altcoin Season, where investors seek the higher potential gains of smaller coins, which tend to be more volatile but can deliver impressive returns.
With Trump’s election win driving optimism and Bitcoin hitting new highs, many altcoins have surged, fueling speculation of an extended Altcoin Season. This trend shows investors are branching out, betting that some altcoins may offer substantial upside as Bitcoin steadies after its recent peaks.
As we head deeper into this period, analysts expect that Bitcoin's recent rally could encourage broader interest in the altcoin market, potentially setting the stage for continued gains across various smaller-cap digital assets in the weeks ahead.
