What Is Altcoin Season?
Altcoin season, also known as altseason, typically occurs when the prices of alternative cryptocurrencies soar significantly higher and outperform Bitcoin. Typically, a surge in market activity, trading volume, and overall bullish sentiment toward altcoins summarize the beginning of the altcoin season. It is important to note that altcoin season is not a fixed event and can vary in duration and intensity.
While altcoin season can offer investors lucrative profit opportunities, it does come with increased risks and market volatility. In order know what the best altcoins to buy are, you will need to fully understand the various dynamics of altcoin season, its triggers, and general indicators.
It is important to note that altcoin season and Bitcoin season represent two distinct phases in the cryptocurrency market cycle.
Firstly, Bitcoin season refers to periods when Bitcoin’s price experiences significant growth and dominance over altcoins. Bitcoin first surged to its old highs in March 2024 following the launch of several Bitcoin ETFs, and then all the way up to $99,574.60 post US elections. The first move saw Bitcoin almost double in value in just under two months, outperforming alternative cryptos in the process, while the last push to its all-time highs added to its dominance, which now sits at just above 60%.
In contrast, altcoin season occurs when altcoins surpass Bitcoin in terms of price appreciation and market capitalization. While Bitcoin season is often associated with a more stable market environment, altcoin season is characterized by heightened volatility and trading activity.
Tokens like Solana and meme coins like dogwifhat have seen substantial growth in recent months. However, the overall trading activity has been skewed toward Bitcoin as a result of the US Securities and Exchange Commission approving several Exchange-Traded Funds products.
