Crypto investors keep wondering if the altcoin season has started or not. But, what is this altcoin season, though, and what happens?
People generally talk about the altcoin season, or altseason, like it’s a holiday. But unlike a holiday, it doesn’t happen on a set date. People are waiting for it like they do for the monsoon. Signs start to show up, and when it hits, it can change everything.
It begins when traders stop paying attention to Bitcoin and start paying attention to coins like Ethereum, Solana, Cardano, and hundreds of smaller ones. Market trends, excitement, and the search for bigger returns are usually what drives the market.
“It’s like a game of musical chairs,” says Mati Greenspan, who started Quantum Economics. Bitcoin is the first currency, but when the music slows down, traders rush to altcoins in search of the next big rally. Bitcoin is still the most popular cryptocurrency, but during altcoin season, smaller coins often get more attention.
How the altcoin season began
The idea goes back to 2011–2013, when the first altcoins came out after Bitcoin. The phrase “altcoin season” really took off in 2017 during the Initial Coin Offering (ICO) boom. That year, Bitcoin lost a lot of its power, and many altcoins went up by hundreds or even thousands of per cent.
In 2020–2021, the next big wave hit. The pandemic stimulus, the rise of DeFi, and memecoins like Dogecoin and Shiba Inu all made people crazy. Bitcoin’s market share went from 70% to about 38%, while altcoins did well.
How to tell when it’s altcoin season
There isn’t an official calendar, but experienced traders look for important signs:
- Bitcoin dominance drops: If Bitcoin’s share of the total crypto market falls below 50%, money may be shifting to altcoins.
- Altcoins do better than Bitcoin: It’s a strong sign when most of the top 50 coins are going up faster than Bitcoin.
- Ethereum is in charge: Ethereum is the second-largest cryptocurrency, so it usually goes up first, then mid-cap coins, and finally small-cap tokens. Sector stories come out: One season it could be AI-related coins, another it could be gaming tokens or decentralized social networks.
- FOMO kicks in: Small coins with low market caps start to double or triple in value in just a few days, and social media goes crazy.
James Butterfill, an analyst at CoinShares, says, “Altseason is as much about feelings as it is about data.” When traders think Bitcoin is “done for now,” they look for other places to trade.
What to expect during the altcoin season
The good news:
- Quick gains: Some coins can double or even triple in a few days.
- A focus on new areas: Money moves from one theme to another, like from DeFi to NFTs to AI tokens.
The downside:
A lot of ups and downs: Big changes can happen in just a few hours.
Scams and pump-and-dump schemes: Not all rallies are real.
No promises: Even during the busiest times, a lot of coins won’t move at all.
Keeping safe
- Don’t follow the hype: It might be near the top if a coin has already gone up 200% in two days. Before you buy, do your research. Check out the team, the technology, and the use case.
- Don’t wait for the perfect top; take profits along the way.
- Take care of your risk: Only invest what you can afford to lose.
- Be careful with liquidity: You might have trouble selling quickly if there isn’t much trading going on.
Crypto educator Wendy O advises: “Treat altseason like surfing. “Ride the wave, but always be ready to bail out before you fall.”
When will the next altseason happen?
Nobody knows for sure.
Possible causes are:
- Bitcoin is settling down after a big rise.
- Interest rate cuts make risky assets more appealing.
- New tech trends are taking off in the crypto world.A word of caution
Altcoin season can be exciting and make you money, but it can also be dangerous and hard to predict. You can make better decisions by recognising the signs, managing your risk, and staying away from hype traps.
Or as trader Scott Melker, known as ‘The Wolf of All Streets’, says: “The best altseason strategy is simple: Be early, be careful, and never forget that the music can stop at any moment.”
