What is alt season? Altcoin season is a time when the value of alternative cryptocurrencies, or “altcoins,” increases relative to Bitcoin. This usually happens after a period of stagnation or decline in the market cap of Bitcoin.
Many investors and traders view altcoins as a more speculative investment than Bitcoin, so they tend to increase in value more during periods of optimism about the cryptocurrency market as a whole. If you’re looking to take advantage of alt season, read on for our tips!
What is an alt season?
Alt season is about the change in market value of altcoins relative to Bitcoin than an increase in absolute value.
What happens to market dominance?
During periods of consolidation for Bitcoin, you might find that the altcoin market will rally relative to Bitcoin and market dominance will shift from a Bitcoin dominant market, to an altcoin dominant with a large increase of the altcoins market cap.
When an altcoin season takes place, the total crypto market cap may not increase. Bitcoin’s market cap could decline.
How often is Alt season?
Alt seasons are not set in stone. They come around when investors tend to shift to an altcoin focused portfolio instead of holding Bitcoin.
This also tends to happen when the market sentiment towards Bitcoin has become negative and you’ll see a decline in Bitcoin’s dominance.
When can we expect Alt season?
The next alt season is difficult to predict.
You can use the popular site which shows the altcoin season index, this displays on a graph when the alt market is rallying and we are in a technical alt season.
How long do Alt seasons last?
An altcoin season typically lasts for a three month period. Crypto investors will typically gain a higher risk tolerance an invest into smaller coins that produce large gains over short period of time. A new flavor of the week emerges quite often and people jump from one coin to the next in the crypto space when an altcoin season is active.
What happens to the altcoin market after an altcoin season?
Altcoins tend to perform very badly after an alt season. The crypto market as a whole tends to decline. The total market cap may go up if the Bitcoin trend resumes upwards, however prices are expected to be volatile, with most people taking profits.
Will there be an altcoin season in 2022?
This is difficult to predict. As new trends emerge such as NFTs, new investors aren’t looking for the next hot altcoin, but instead the next best JPG NFT.
You can use technical analysis to help predict if an altcoin season will come.
Alternative coins will not always outperform Bitcoin in the long run, so unless you have a clear understanding or the perfect indicator for when altcoin season is coming, I would stick to Bitcoin.