What Is Altcoin Season Index and When Is It Coming?

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Eliman Dambell
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Eliman Dambell was a news writer and editor at Bitcoin.com, FXStreet and Investing.com. He commentates on various markets, including Crypto, Stocks and FX.

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The start of the year has seen cryptocurrency markets trending upwards, with both Bitcoin and altcoins providing profitable opportunities to investors. Despite Bitcoin hitting new highs, most new traders have been focused on altcoins to seek profits. As such, understanding what “altcoin season index” is has become increasingly important.

The altcoin season index measures the performance of altcoins relative to Bitcoin, indicating whether altcoins are outperforming Bitcoin in the market over a specified period. In this guide, we break down the alt season, when it is expected to occur, and explore how to take advantage of it.

Summary: What Is Altcoin Season?


Altcoin season, also known as altseason, typically occurs when the prices of alternative cryptocurrencies soar significantly higher and outperform Bitcoin. Typically, a surge in market activity, trading volume, and overall bullish sentiment toward altcoins summarize the beginning of the altcoin season. It is important to note that altcoin season is not a fixed event and can vary in duration and intensity.

While altcoin season can offer investors lucrative profit opportunities, it does come with increased risks and market volatility. In order know what the best altcoins to buy are, you will need to fully understand the various dynamics of altcoin season, its triggers, and general indicators.

Altcoin Season vs. Bitcoin Season


It is important to note that altcoin season and Bitcoin season represent two distinct phases in the cryptocurrency market cycle.

Firstly, Bitcoin season refers to periods when Bitcoin’s price experiences significant growth and dominance over altcoins. Bitcoin first surged to its old highs in March 2024 following the launch of several Bitcoin ETFs, and then all the way up to $109,079.00 post US elections. The first move saw Bitcoin almost double in value in just under two months, outperforming alternative cryptos in the process, while the last push to its all-time highs added to its dominance, which now sits at just above 60%.

bitcoin vs altcoins: yearly dominance chart

In contrast, altcoin season occurs when altcoins surpass Bitcoin in terms of price appreciation and market capitalization. While Bitcoin season is often associated with a more stable market environment, altcoin season is characterized by heightened volatility and trading activity.

Tokens like Solana and meme coins like dogwifhat have seen substantial growth in recent months. However, the overall trading activity has been skewed toward Bitcoin as a result of the US Securities and Exchange Commission approving several Exchange-Traded Funds products.

History of Previous Altseasons


Previous altcoin seasons have witnessed remarkable surges in various altcoin prices, with some experiencing exponential growth within relatively short periods. Examples of notable altseasons include the bull runs of 2017-2018 and 2020-2021.

These historical precedents serve as valuable reference points for understanding the dynamics of altcoin seasons and their potential impact on the cryptocurrency market. Let’s take a look at them in more detail.

2017-2018

This altcoin season was spurred by a huge drop in Bitcoin dominance, going from 86.3% in late 2017 and then falling to a low of 38.69% at the start of 2018. During that period, the price of Bitcoin went from a then-record high above $20,000 to trading under $6,000 a few months later.

The surge in altcoins outperforming Bitcoin came as the initial coin offering (ICO) market was in full swing in 2017-2018. Many blockchain projects launched ICOs to raise funds by issuing their own tokens. These include EOS, which raised over $4 billion, making it one of the most successful presales in history. Tezos was another strong-performing altcoin during this period after raising $232 million for its ICO.

2020-2021

The altcoin season of 2020-2021 came during the coronavirus pandemic and as retail traders and crypto degens looked for investment opportunities outside of Bitcoin. This resulted in the birth of modern meme coins, with Dogecoin and Shiba Inu recording historic levels of growth. Since then, we’ve seen several “memecoin supercycles,” where the meme coin sector far outperforms the rest of the market.

Non-fungible tokens (NFTs) were also boosting the altcoin markets, helping to increase sentiment around the wider crypto and blockchain market. During this time, Bitcoin dominance plunged from 70% to 38%, while the market value held by altcoin doubled from 30% to 62%.

Signs That a New Altseason Has Begun


After seeing examples of previous cycles, you may be asking, “When is the next altcoin season?” Getting to invest in next altseason coins is an exciting prospect for cryptocurrency enthusiasts, as it often leads to significant price gains.

However, identifying the onset of an altcoin season requires a strong understanding of market cycles and trends. Let’s explore some key signs that may signal the beginning of a new altcoin season.

Increase in Altcoin Dominance

One of the primary indicators that signal the start of an altcoin season is a noticeable increase in altcoin dominance within the overall cryptocurrency market. Altcoin dominance refers to the collective market capitalization of all cryptocurrencies, excluding Bitcoin, expressed as a percentage of the total cryptocurrency market cap.

According to CoinGecko, Bitcoin’s market dominance stands at 50.15% of the total market capitalization. When altcoin dominance begins to rise, it suggests that crypto investors are increasingly allocating capital to alternative cryptocurrencies, indicating a potential shift in market sentiment towards altcoins and the beginning of altcoin season.

Rising Trading Volumes

Another significant sign of the start of altcoin season is a surge in trading volumes across various altcoins. Increased trading volumes indicate heightened crypto market activity and investor interest in altcoins, leading to greater liquidity and price volatility.

By monitoring trading volumes you can gain valuable insights on sentiment in the market and the strength of an emerging altcoin season. The Tether (USDT) stablecoin usually has the highest trading volume due to it being used as an exchange currency, followed by Bitcoin and then Ethereum.

Altcoin Season Index

Some cryptocurrency analytics platforms offer specialized indices designed to track and measure the performance of altcoins relative to Bitcoin.

An altcoin season index aggregates data from the top 50 altcoins and analyzes their price movements to determine whether an altcoin season is underway. Investors can use these indices as a tool to gauge the overall health and momentum of the altcoin market, helping them make informed investment decisions.

Typically, when the altcoin season index is at a reading of 75% and above, it is a sign that an altcoin season has started. Currently, it is at 37%, according to the Blockchain Center.

altcoin season index

Coin Price Breakouts

Finally, significant price breakouts and upward momentum in the prices of various altcoins are clear indicators of the onset of an altcoin season. As investors flock to altcoins in search of potential opportunities, prices may experience sharp and sustained increases, breaking through key resistance levels and forming new highs.

Solana is a good example of this. In March, it broke out of its $200 resistance level. However, it remained well below its record high of $260, and quickly contracted in price. Monitoring price breakouts like this and identifying potential bullish trends can serve as early indicators of an impending altcoin season.


On the other hand, the recent BTC spike towards $90,000 has shifted numerous cryptocurrencies to bullish, acting as a catalyst to their upswing. Cryptos like Avalanche, SUI, and Shiba Inu all gained close to or over 50% in just a week’s time — this time without any retracements so far.

Is It Altcoin Season Now in 2025?


While Bitcoin was largely dominant throughout most of the 2024 bull run, as of December 2024 we can confirm that altcoin season has officially begun.

Bitcoin’s recent upswing past $100,000 has caused the entire market to look towards the moon — however, the largest cryptocurrency by market cap is still in a dominant position. On the other hand, K33 Research identified a pattern resembling past altcoin rallies, hinting at their imminent rise and suggesting the onset of a brand new altcoin season.

Moreover, analysts anticipate Ethereum hitting $4,500-5,000 and altcoins yielding significant returns. With historical trends and recent dynamics aligning, the crypto market braces for an altcoin season, offering investors promising opportunities.

When Is the Next Altcoin Season Coming?


It’s hard to predict the timing of the next altcoin season due to the unpredictable nature of the cryptocurrency market. Factors such as regulatory developments and macroeconomic trends can influence the timing and duration of altcoin seasons.

Altcoin markets usually come after Bitcoin has realized its gains and investors start to take profits. However, in order for that to happen, the market needs to test various highs and lows of BTC first. If we take into account the rising interest in Bitcoin ETFs, interest rate cuts by the US Federal Reserve, as well as an overwhelmingly positive response to Donald Trump’s victory in the US elections, Bitcoin will keep its dominance for at least a short while. As seen during the last altcoin season in 2021, markets surged as a result of lower interest rates, meaning investors deployed capital away from banks and looked for higher-return investments.

In the past 90 days, 17 of the top 50 non-Bitcoin (BTC) cryptocurrencies have outperformed Bitcoin, fueling speculation that the next altcoin season may be approaching in the coming months. Recent market developments, including the US elections, approval of Ethereum ETFs, and the launch of Spot Bitcoin ETFs, have set the stage for this anticipated upward movement.

Will Trump’s Election Victory Start The Next Altcoin Season?

Donald Trump’s recent election victory has significantly impacted the cryptocurrency market, with Bitcoin reaching a record high of $109,079.00. This surge is attributed to expectations of reduced regulatory scrutiny and the potential removal of SEC Chair Gary Gensler, who has been critical of crypto projects.

Trump’s pro-crypto stance, including proposals for a federal Bitcoin reserve and increased mining operations in the U.S., has bolstered market confidence. These developments suggest a favorable environment for cryptocurrencies, potentially signaling the onset of the next altcoin season. It’s important to note that Trump is not only bullish on Bitcoin, but many altcoins, which inspired the creation of Trump meme coins.

How to Take Advantage of Altcoin Season


As the next altcoin season approaches, it is important to know how you can capitalize on potentially profitable opportunities. Let’s explore some of these points to consider below.

1) Research and Diversify Holdings

Firstly, research is key when navigating and participating in the market during an altcoin season. Take your time and thoroughly analyze the fundamental and technical aspects of potential investments to find the best altcoins to buy.

Once you do so, you will also need to diversify. Exploring different altcoins can help spread risk and maximize potential returns and ensures not all of your eggs are in one basket. By conducting thorough research and diversifying your portfolio, your overall chances of success will greatly increase.

2) Time Your Entries and Exits

Another important point is timing. Consider using technical analysis tools like support and resistance, and relative strength index (RSI) to identify optimal entry and exit points for trades.

These can be good altcoin season indicators and will help you monitor price trends and crypto market sentiment before deciding to buy. Experienced investors use such tools to make informed investment decisions, like when to take profits. Setting clear entry and exit strategies can be vital in minimizing losses and maximizing gains during periods of heightened volatility.

Risks of Trading During Altcoin Season


While altcoin seasons present lucrative opportunities, it can also carry inherent risks that you should be mindful of:

1) Extreme Volatility

Altcoins are known for their extreme volatility, with prices often experiencing rapid and unpredictable fluctuations. This volatility can lead to significant gains but also exposes investors to the risk of substantial losses. It’s essential to exercise caution and employ risk management strategies to mitigate the risks of investing in high volatility crypto. This is where diversification can come in handy.

2) Pump and Dump Coins

Some projects may be pump and dump schemes or rug pulls, so it is important to know how to avoid these. This is where prices are inflated by coordinated buying activity before being rapidly sold off, resulting in substantial losses for unsuspecting investors.

crypto rug pull

An example of this is EthereumMax, which used Kim Kardashian to help promote its brand prior to defrauding investors. Be wary of projects exhibiting suspicious price movements or overly aggressive marketing tactics.

3) Buying at Overvalued Prices

FOMO (Fear of Missing Out) can lead investors to buy altcoins at overvalued prices during periods of market excitement. However, buying at inflated prices increases the risk of losses if prices subsequently correct, which is typically a 30-40% drop. You must stick to investment strategies that are based on thorough research and analysis.

Conclusion — Is It Altcoin Season?


Altseason has now undoubtedly begun, with Bitcoin crossing the famed $100,000 mark and altcoins surging seeing even more substantail gains.

Although it offers profit opportunities, investors should exercise caution, conduct thorough research, and be prepared to navigate the risks associated with volatile market conditions. Stay informed with market trends and build sound investment strategies. When the next cycle begins, you can potentially capitalize on the opportunities.

FAQs


Is it currently altcoin season?

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References

  1. Bitcoin surges to new record high above $63,000 (CNBC)
  2. Two jobless brothers become millionaires following meme coin investment (CNN)
  3. This Week in Crypto: Market Exuberance (K33 Research)
  4. U.S. Federal Reserve interest rate cut looms (USA Today)
  5. Analyst Michaël Van de Poppe’s Prediction (CoinPedia)
  6. Ethereum ETFs Approved: Insights into the SEC’s Decision (Forbes)
  7. Thailand Approves Its First Spot Bitcoin ETF (BitcoinMagazine)
  8. Australia Approves First Spot Bitcoin ETF, Following APACs Like Thailand, Hong Kong (99Bitcoins)
  9. Kim Kardashian pays fine following endorsement of pump and dump (BBC)
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