Is Altcoin Season a Hoax?

The idea of "altcoin season" suggests that after Bitcoin pumps, capital flows into altcoins, causing them to outperform BTC. While this narrative has played out in some cycles, many argue it's more of a misleading illusion than a reliable market pattern. Here’s why:

1. Bitcoin Dominance Rarely Collapses – True altcoin seasons require Bitcoin dominance ($BTC

’s share of the total crypto market cap) to decline significantly. Historically, BTC dominance does drop at times, but it often rebounds, leaving most altcoins struggling to maintain gains.

2. Liquidity Doesn't Work That Way – The assumption that Bitcoin profits automatically rotate into alts ignores market realities. In many cases, when BTC surges, traders prefer to cash out into #stableCoins or #fiatmoney rather than gamble on highly volatile altcoins.

3. Most Alts Are Just Hype Cycles – Outside of a few legitimate projects, most altcoins pump and dump based on speculation, not long-term adoption. Many coins that soared in past “alt seasons” have since vanished or are trading at a fraction of their highs.

4. Institutional Focus Is on BTC & $ETH – Big money isn’t rotating into random altcoins. Institutions and serious investors prioritize Bitcoin and Ethereum, leaving most alts dependent on retail speculation, which is far less reliable.

5. Exit Liquidity for Whales – What some call an "altcoin season" is often just a period where early investors and whales unload their bags onto retail traders. When the hype fades, retail is left holding bags while whales move on.

While certain altcoins can see impressive gains, calling it a structured “season” suggests a level of predictability that doesn’t really exist. In reality, crypto markets are driven by liquidity, sentiment, and speculation—factors that don’t always align to favor altcoins long-term.

What do you think? Have you personally profited from an "alt season," or do you see it as a myth?