$BTC

The cryptocurrency market often experiences distinct phases: "Bitcoin Season" and "Altcoin Season."

Bitcoin Season typically sees BTC's dominance rise, with capital flowing into the leading cryptocurrency as investors seek relative safety or anticipate a major Bitcoin rally.

Altcoin Season occurs when Bitcoin's price stabilizes or consolidates after a significant run.

This encourages investors to seek higher returns in alternative cryptocurrencies.

Capital then rotates from BTC into altcoins, leading to widespread and often explosive price surges across various projects.

Key indicators include declining Bitcoin dominance, increased altcoin trading volumes, and strong performance from major altcoins like Ethereum, which often acts as a bellwether for the broader altcoin market.

These cycles are driven by investor sentiment, technological advancements in altcoin ecosystems, and macroeconomic factors.