What is Altseason in Crypto?
In the cryptocurrency world, “Altseason” (short for Altcoin Season) refers to a specific period when altcoins—all cryptocurrencies other than Bitcoin—experience a significant surge in price, often outperforming Bitcoin in terms of percentage gains.
During Altseason, investors shift their focus and capital from Bitcoin to alternative cryptocurrencies like Ethereum (ETH), Solana (SOL), Cardano (ADA), and hundreds of other smaller coins. These altcoins see a spike in demand, leading to rapid price increases across the market.
How Altseason Happens
Altseason usually follows a strong Bitcoin rally. As Bitcoin reaches new highs or becomes relatively stable, many traders begin to look for higher returns elsewhere—typically in lower-market-cap altcoins, which have more room to grow. The capital rotation leads to increased buying of altcoins, pushing their prices up. This chain reaction can cause even the most obscure coins to rally significantly.
One popular way to measure whether we are in an Altseason is the Altcoin Season Index, which analyzes how many altcoins are outperforming Bitcoin over a 90-day period. If more than 75% of the top altcoins perform better than Bitcoin, it’s often considered Altseason.
Characteristics of Altseason
1. Massive Altcoin Gains: Many altcoins may double or triple in price within weeks or days.
2. High Trading Volumes: Increased interest leads to a spike in trading activity on exchanges.
3. Retail FOMO (Fear of Missing Out): New investors rush in, hoping to catch the next 10x coin.
4. Social Media Hype: Crypto Twitter, Reddit, and Telegram buzz with talk of new and trending projects.
Risks of Altseason
While Altseason can be extremely profitable, it’s also very risky. Many altcoins are highly volatile and can crash just as quickly as they rise. Some may be based on weak fundamentals or hype, and investors can lose money if they enter too late or hold on too long.
