#AltcoinSeasonLoading But if bitcoin has a “blue sky breakout” – say, by closing a week above $75,000 a coin – sentiment could shift. First, the breakout would generate more media coverage, drawing in fresh excitement and investor interest. Next, with more investors piling into bitcoin to chase the rally (new highs typically beget new highs), savvy traders would likely siphon some bitcoin profits into ether and other altcoins for the so-called catch-up trade.

Bitcoin makes up about 60% of the total crypto market size now, so even a small shift in its liquidity could have a major impact on altcoin prices.

The chart below shows what happened in the leadup to the last big altseason, back in early 2021. Bitcoin (in white) went into price discovery in December 2020 – after breaking its 2017 bull market peak of around $20,000.