What Is Altcoin Season (Altseason)?
Also known as: Altseason, Altcoin Season, Alt Season
In short
Altcoin season (altseason) is a common term for a market phase in which altcoins significantly outperform Bitcoin over a period of time and incoming capital flows mainly into altcoins.
According to an observation often made in the crypto market, during bull runs capital first flows into Bitcoin, then profits shift to Ethereum and large altcoins, and in the final stage to smaller and riskier projects. In this last phase, many altcoins can gain value at high rates in a short time. The rallies of late 2017 to early 2018 and of the first months of 2021 are often cited as examples of an altcoin season.
The most widely used indicator for tracking altcoin season is Bitcoin dominance; a fall in dominance may signal that capital is moving into altcoins. Some data sites also publish altcoin season indexes that measure how many of the largest altcoins have outperformed Bitcoin over a given period. Rises in the ETH/BTC pair are also among the signals followed.
Altcoin season is not a scientific definition but mostly a market interpretation made in hindsight; there is no guarantee it will repeat in every bull market. In these periods, speculation and FOMO increase, and sharp rallies are often followed by deep declines. It is not possible to determine in advance with certainty when a season has started or ended.
Last updated: · This content is for information purposes only and is not investment advice.