In August last year, the crypto market was in full euphoria, with Bitcoin (BTC) hitting a record high of $124,500. Speculations about an imminent "Altseason" resurfaced. How does such a period of altcoin dominance truly begin? And more importantly, how can one recognize it in time?
Historically, Bitcoin has always played the catalyst role in launching an Altseason. When BTC experiences a strong rise, attracting new investors, these investors then turn to altcoin hoping for higher returns.
During the 2021 bull market, for example, Bitcoin increased by 59%, while altcoins recorded an average increase of 174%. This pattern repeated itself in 2024 after Trump’s election. At that time, 20 of the 50 largest altcoins had outperformed BTC.
A key indicator to watch is Bitcoin’s dominance over the entire crypto market. Currently, it stands at 58.8%, down from June (nearly 66%), but remains high compared to 2021 and subsequent years.
General economic conditions also play a crucial role. When central banks like the U.S. Federal Reserve (Fed) lower interest rates or inject liquidity, investors turn to riskier assets, greatly benefiting altcoins.
Analyses suggest that further rate cuts in 2025 could revitalize the crypto market. In the past, accommodative monetary policy, as seen in 2020-2021, led to record gains for altcoins.
In September, the Fed announced the first rate cut this year. However, uncertainty persists regarding the future trajectory, creating concerns and reinforcing certain risks.
Altseason is often characterized by strong enthusiasm and “fear of missing out” (FOMO). In 2021, this led to spectacular surges for memecoins like Shiba Inu (SHIB), making some investors quickly wealthy.
This excitement typically translates into increased Google searches for “altcoins” at the beginning of an Altseason. This increased attention attracts new buyers, driving prices up and fueling even more euphoria.
A useful indicator for anticipating a period of altcoin dominance is the “Altcoin Season Index.” This measures whether altcoins outperform Bitcoin over a 90-day period. When more than 75 of the top 100 altcoins exceed BTC’s performance, we can talk about a true “Altseason.”
Currently, the index sits at 70, having slightly decreased in recent days. Although it briefly reached the Altseason threshold between September 17 and 20, a true trend reversal has not been observed.
Nevertheless, in December, the index reached 87, providing a clearer signal of temporary altcoin dominance.
Altseason remains a complex phenomenon, influenced by multiple factors. As the crypto industry continues to evolve, the ability to detect early signs of such a period becomes increasingly crucial for savvy investors.
An Altseason is emerging with altcoins poised to outperform Bitcoin, offering returns of up to 174%. Ready to catch this wave? Here’s how to buy AVAX, XRP, or SHIB on Bitget to capitalize on bullish signals with a precise strategy.
Strategy for managing this altcoin season:
Related topics:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
