Altcoin season, often referred to as "altseason," is a period in the cryptocurrency market when alternative cryptocurrencies (altcoins) outperform Bitcoin in percentage returns. This typically occurs when investors shift their attention and capital from Bitcoin to altcoins in search of higher returns.
Key indicators of the altcoin season:
1. Falling Bitcoin Dominance: A decline in Bitcoin dominance often signals the start of altcoin season as more money flows into altcoins.
2. Altcoin Outperformance: If 75% of the top 50 cryptocurrencies by market cap outperform Bitcoin over a 90-day period, this could indicate altcoin season.
3. Market Sentiment: Growing positive sentiment around altcoins, driven by new projects, partnerships, or technological advancements, can contribute to altcoin season.
4. Ethereum and Layer 1 Performance: Ethereum, the second largest cryptocurrency, often leads altcoins. When Ethereum gains momentum, other altcoins often follow.
Altcoin Season Index:
The Altcoin Season Index tracks market trends and helps determine whether it is altcoin season.
A value above 75 indicates an altcoin season.
A value below 25 indicates Bitcoin dominance.
You can check tools like Blockchain Center’s Altcoin Season Index for updates.
Strategies during the altcoin season:
1. Diversify: Focus on altcoins with strong fundamentals, partnerships, or unique use cases.
2. Manage your risk: Altcoins are more volatile than Bitcoin. Use stop-loss orders and only invest what you can afford to lose.
3. Follow trends: Follow news about promising projects, NFTs, DeFi, or other new sectors in cryptocurrencies.
Current market status:
As of December 2024, Bitcoin dominance is at one of its highest levels since 2021 (around 61%). While this is currently favorable for Bitcoin, analysts predict that if dominance exceeds 65%, it could trigger a capital rotation into altcoins, potentially initiating an altcoin season. #ChristmasMarketAnalysis
