Alt Season
Alt season is a period when alternative cryptocurrencies (altcoins) significantly outperform Bitcoin, typically seeing much higher price gains while Bitcoin's growth slows or stagnates.
Kacper Tomasiak
Web & SEO Manager at Swapped.com
If you've spent any time around crypto communities, you've probably heard people talking excitedly about "alt season." But what exactly does this mean, and why do crypto investors get so worked up about it?
What Does Alt Season Mean?
Alt season is a period in the cryptocurrency market when alternative cryptocurrencies (called "altcoins") perform much better than Bitcoin. During these times, altcoins like Ethereum, Solana, or Cardano might see their prices jump 50%, 100%, or even more, while Bitcoin's price stays relatively flat or grows much slower.
Think of it like this: imagine Bitcoin is the popular kid in school that everyone usually follows. During alt season, suddenly all the other kids become more interesting and popular, and everyone starts paying attention to them instead.
The term "altcoin" simply means any cryptocurrency that isn't Bitcoin. Since Bitcoin was the first cryptocurrency, everything else is considered an "alternative" to it. This includes well-known names like Ethereum, as well as thousands of smaller, lesser-known cryptocurrencies.
Why Alt Season Happens
Alt season typically occurs when investors feel confident about the crypto market but want to find bigger profits than Bitcoin might offer. Here's how it usually unfolds:
First, Bitcoin often leads the market upward, gaining investor confidence. Once people feel comfortable with crypto again, they start looking for the next big opportunity. Since altcoins are generally riskier than Bitcoin, they often have more room to grow when market sentiment is positive.
The Bitcoin Dominance Connection
Bitcoin dominance measures what percentage of the total cryptocurrency market cap belongs to Bitcoin. When Bitcoin dominance is high (say, 60-70%), it means Bitcoin is sucking up most of the investment money. When dominance drops to 40-50%, it typically signals that alt season is beginning or already underway.
Here's how it usually plays out: Bitcoin starts a bull run first, attracting new investors and media attention. As Bitcoin's price stabilizes or slows down, investors start looking for the "next Bitcoin"—cryptocurrencies that might deliver even bigger gains. This is when money begins flowing into altcoins.
The dominance acts as a sentiment checker for the entire crypto market.
How to Recognize Alt Season
Several signs typically indicate alt season is starting or in full swing:
Price Movements Tell The Story
You'll notice altcoins posting double-digit gains while Bitcoin moves sideways or grows modestly. For example, while Bitcoin might gain 5% in a week, you might see Ethereum gain 20% and smaller altcoins gain 50% or more.
Social Media Buzz Increases
Crypto Twitter, Reddit, and other platforms start buzzing about specific altcoins. You'll see more discussions about projects you've never heard of, and people sharing screenshots of impressive gains.
New Project Launches Multiply
During alt season, new cryptocurrency projects often launch or announce major updates, trying to capitalize on the increased interest in alternatives to Bitcoin.
Because there are so many indicators of an alt season, it's hard to miss it.
Different Types of Alt Seasons
Not all alt seasons are the same. Sometimes, only the biggest altcoins like Ethereum and Solana perform well. Other times, even the smallest, riskiest cryptocurrencies see massive gains. The broadest alt seasons, where almost everything goes up, are often the most exciting but also the most dangerous for beginners.
Why Alt Season Matters
Alt season represents both the biggest opportunities and the biggest risks in cryptocurrency investing. Understanding this concept is crucial for anyone considering investing in crypto beyond Bitcoin.
Opportunities and Risks
During alt season, it's possible to see incredible returns. Many investors have turned small amounts into significant wealth by catching the right altcoin at the right time. Projects that solve real problems or introduce innovative technology can see their values multiply by 10x or more.
However, alt season is also when the most spectacular crashes happen. Many altcoins that surge during alt season later lose 80-90% of their value when the cycle ends. The coins that gained the most during alt season often fall the hardest when Bitcoin starts dominating again.
For beginners, alt season can be particularly dangerous because FOMO (fear of missing out) is at its peak. Seeing others make money quickly can lead to impulsive decisions and poor risk management.
Preparing for Alt Season
If you're interested in potentially benefiting from alt season, here are some beginner-friendly approaches:
Start with education. Before investing in any altcoin, learn about what the project actually does. Don't just buy something because it's going up in price. Understand the technology, the team behind it, and what problem it's trying to solve.
Consider the major altcoins first. Projects like Ethereum, which has been around for years and has real-world use cases, are generally safer bets than brand-new projects with no proven track record.
Never invest more than you can afford to lose. This is especially important with altcoins, which can be extremely volatile. A coin that doubles in price one week might lose half its value the next.
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