Is “Alt Season” a mystery? First, let’s define “Alt Season”.
Definition: When alts outperform $BTC and the overall value soars.
This is a period of prosperity in the alt market, driven by the market’s enthusiasm.
Think of it as a rising tide that lifts all boats. Historically, there have been two main sources of this liquidity:
New inflows from regular investors through CEXs
Outflows from BTC on CEXs to alts on CEXs
Liquidity then moves further down the market cap ladder and risk curve.
This is what a strong alt season does — it lifts nearly every sector. The path to an alt season in 2021 was once clear, but it is no longer.