IS This ALT Season ???!!
Altcoin season, often called "alt season," refers to a period in the cryptocurrency market when altcoins (any cryptocurrency other than Bitcoin) experience a significant surge in price and outperform Bitcoin in terms of market performance.
Indicators of Altcoin Season
1. Bitcoin Dominance Drops: The percentage of the total cryptocurrency market capitalization held by Bitcoin decreases as funds flow into altcoins.
2. Altcoin Outperformance: A majority of altcoins show higher percentage gains compared to Bitcoin.
3. Increased Trading Volume in Altcoins: Exchanges report higher activity in altcoin markets.
Causes of Altcoin Season
Profit-Taking from Bitcoin: Investors who made gains in Bitcoin may diversify into altcoins.
Market Sentiment: Positive news or developments in the altcoin space.
Speculation: New projects or tokens generate hype and attract speculative trading.
Ethereum or Major Altcoin Momentum: A strong performance by Ethereum or other large-cap altcoins often pulls smaller altcoins upward.
How to Check if It’s Altcoin Season
Altcoin Season Index Tools: Websites like the Blockchain Center's Altcoin Season Index can help determine if the market is in an alt season.
Market Observation: Look at the price performance of top altcoins compared to Bitcoin over the past 30 or 90 days.