What is Altcoin Season?
'Altcoin Season' refers to a period in the cryptocurrency market where cryptocurrencies other than Bitcoin (such as Ethereum, Ripple, Litecoin, etc.) perform exceptionally well. During this time, the price increases of altcoins may surpass that of Bitcoin, attracting significant attention and capital inflow from investors.
When is it Altcoin Season?
Relative Performance: Compare the performance of Bitcoin against other major altcoins. If most altcoins are performing better than Bitcoin, it can be considered that we have entered 'Altcoin Season'.
Market Capitalization Ratio: The market capitalization ratio of Bitcoin in the entire cryptocurrency market is an important reference indicator. When Bitcoin's market capitalization ratio declines, it usually means that funds are flowing into other altcoins, which may signal the arrival of altcoin season.
Trading Volume and Price Volatility: The trading volume and price volatility of altcoins are also important factors in measuring their performance. If the trading volume and prices of altcoins surge significantly while Bitcoin remains relatively stable, this may also indicate the onset of altcoin season.
When the market's attention on certain altcoins increases, it may drive the prices of these tokens higher.
Altcoin season provides investors with opportunities for diversified investments. By investing in different altcoins, investors can achieve higher returns when Bitcoin is underperforming. However, it is important to note that the volatility of altcoins is usually greater than that of Bitcoin, so investors need to be more cautious and manage risks when participating in altcoin season.
Historically, altcoin seasons often occur when Bitcoin's price is relatively stable or entering a correction phase. For example, during the bull market from late 2017 to early 2018, many altcoins saw significant price increases, attracting a lot of investor attention. However, as the market entered a bear phase, the performance of altcoins also gradually weakened.
