The Altcoin Season Index is a tool that helps investors and traders determine when alternative cryptocurrencies (altcoins) are outperforming Bitcoin in terms of growth rates. It is calculated based on the comparison of the returns of the top 50 or top 100 altcoins with Bitcoin over a specific period, usually 90 days. For example, if the index reaches 75% or higher, it signals the beginning of 'alt season' — a time when altcoins are rising faster than BTC. This metric is closely related to Bitcoin's dominance — its market capitalization share of the overall crypto market. When BTC dominance decreases (currently around 60%) and total capitalization increases, capital often flows into altcoins. Historically, alt seasons have been observed in 2017-2018 (the ICO boom) and in 2021 (the popularity of DeFi). For traders, the index serves as a benchmark for portfolio diversification. For example, the rise of Ethereum often precedes a broader uptrend in altcoins. However, it is important to remember: the index reflects current dynamics and does not guarantee future growth. Positive news or technological breakthroughs in altcoins can trigger alt season. Today, when Bitcoin holds strong positions, investors are looking for signals for a new capital redistribution. Alt season is an opportunity, but also a risk that requires caution.
