The main factors contributing to the start of the altcoin season:
1. Stabilizing or Declining Bitcoin (BTC) Dominance
• If BTC dominance (percentage of cryptocurrency market capitalization accounted for by Bitcoin) starts to decline, it could mean investors are moving to altcoins.
• The current transition threshold is a drop in BTC dominance below 40-45%.
2. Growing interest in new technologies
• The release of new projects such as Layer-2 solutions (Arbitrum, Optimism) or tokens related to artificial intelligence, DeFi, NFT or the metaverse can stimulate the season.
3. The end of the accumulation phase of bitcoin
• Historically, after a significant increase in BTC, there is often a reallocation of capital into altcoins as investors seek greater returns.
4. Macroeconomic factors
• If there is a positive trend in the cryptocurrency market due to lower interest rates or favorable regulatory conditions, altcoins also receive support.
