Altcoin season
Altcoin season, also called altseason, is a period when altcoins outperform Bitcoin. Altcoins are all cryptocurrencies other than Bitcoin.
What is altcoin season?
During an altcoin season, many altcoins rise more than Bitcoin. Bitcoin may move very little or stay relatively stable during the same period.
This often happens when money shifts from Bitcoin to altcoins. Bitcoin dominance then declines. This is Bitcoin’s share of the total value of the crypto market.
People sometimes follow the Altcoin Season Index. It compares the performance of major altcoins with Bitcoin. An index like this is a tool, not a prediction of future prices.
An example of altcoin season
Suppose Bitcoin stays at about the same value. At the same time, many altcoins rise more than Bitcoin over a few weeks.
People may call this an altcoin season. So it’s not about a single coin going up, but a period when many altcoins outperform Bitcoin.
Why does altcoin season matter in crypto?
News about the crypto market often mentions altcoin season when Bitcoin dominance is falling or altcoins are rising sharply. A lot of attention on certain types of crypto, such as memecoins, can also be part of it.
An altcoin season doesn’t mean every altcoin will rise. It’s also impossible to predict in advance when one will begin, how long it will last, or which coin will perform best.
The risks are high. Altcoins can rise in value quickly, but they can also fall sharply. Hype and FOMO, the fear of missing out on gains, can lead people to buy at a bad time.