Do you know when the Altcoin season start?
Before we find a right answer to this question, let's look at what an Altcoin is. So, according to a generally definitions, Altcoin are all cryptocurrencies other than Bitcoin and Ethereum. I think most Altcoins are designed and released by developers with different visions. But why? Because some developers disagree with others and make their own crypto coin and make their own story for it.
After this informations we can understand, what Altcoin Season is.
Altcoin Season.
As far as I know Altcoin seasons are, when the aggregate crypto market capitalization of all Altcoins surpasses Bitcoin. As I mean, this trend typically occours when increased investor confidence spills over Bitcoin, increasing investment in other cryptocurrencies when Bitcoin becomes unaffordable for retail investors. During this period, the trading volume of Altcoins attracts the attention of investors as confidence in the crypto market extends beyond Bitcoin and I'm sure for Ethereum as well, and promotes investment in emerging cryptocurrencies. Simply, there is already a profit in Bitcoin or Ethereum, they look investment opportunities in Altcoins.
Okey, okey we are now we know what is Altcoin and what is Altcoin Season. But what is a difference between Altcoin Season and Bitcoin Season?
Altcoin Season vs Bitcoin Season
During Altcoin season, when the focus will shifts from Bitcoin to alternative cryptos, the price and trading volume increase significantly. A number of factors are driving this surge, including speculative trading, the launch of new projects, technology developments and increasing utility attracting investor interest. The results is often a period where many Altcoins rise quickliy, often outperforming Bitcoin. Capital will flow into Altcoins after a prolonged period of Bitcoin price appreciation and become unaffordable for average investors.
And finally, if you want to quickly check where the market is, I recommend this website to your attention: https://www.blockchaincenter.net/en/altcoin-season-index/
In this website you can see that, the indicators suggest a transition from Bitcoin dominance to a broad Altcoin rally is imminent, emphasizing market cyckles, technology developments and economic events.
What do you think? Thanks for sharing with me.
Enjoy your journey and most important the above does not constitute financial advice. It is only reflects my opinion from crypto market.
