Altcoin season is a captivating period in the cryptocurrency market where altcoins, cryptocurrencies other than Bitcoin, experience a surge in price and outperform Bitcoin. It's a time of heightened excitement and opportunity for investors, as the market shifts its focus from Bitcoin to a wider range of digital assets.
Key Characteristics of Altcoin Season
Bitcoin Dominance Decreases: Bitcoin's dominance, measured by its percentage of the total crypto market cap, tends to decline during altcoin season. This indicates that more capital is flowing into altcoins.
Altcoin Price Surges: Altcoins experience significant price increases, often outpacing Bitcoin's performance. Some altcoins may even witness substantial gains of 30%, 50%, or even 100% within a short timeframe.
Increased Trading Volume and Market Attention: Trading activity in altcoins intensifies, and they attract greater attention from traders and investors. This increased interest fuels further price appreciation.
Speculative Investments and FOMO: The allure of potentially high returns during altcoin season can lead to speculative investments. As prices rise, the fear of missing out (FOMO) can drive even more investors into the market.