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Altcoin Season refers to a period in the cryptocurrency market when alternative cryptocurrencies (altcoins) outperform Bitcoin in terms of price growth. During this phase, many investors shift their focus from Bitcoin to various altcoins, leading to a significant surge in their values.
Key Characteristics of Altcoin Season:
Bitcoin Dominance Declines: The market dominance of Bitcoin (its share of the total cryptocurrency market cap) decreases as altcoins gain more traction. This is a primary indicator of an altcoin season.
When Does Altcoin Season Happen?
Altcoin season typically occurs after a major rally in Bitcoin, where Bitcoin reaches new highs and then stabilizes or starts to correct. Investors who have made profits in Bitcoin often look to reinvest in smaller, high-potential altcoins in hopes of achieving similar or greater returns.
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