What is Altseason?
"Altseason" refers to a phase in the cryptocurrency market cycle where altcoins (alternative cryptocurrencies to Bitcoin) experience rapid price appreciation against Bitcoin. A classic example occurred between late December 2017 and early January 2018, when altcoins surged dramatically.
This fleeting altcoin bull market can be both heaven and hell—some investors thrive, while others crash. For many retail investors, catching the altseason wave represents hope for financial upward mobility, especially as Bitcoin's high price (around $35,000) becomes less accessible.
Once altseason ends, Bitcoin regains dominance, and altcoins often face devastating declines—sometimes dropping 90% or more. This phase is colloquially called "Salt Season."
How can investors time the market to capture altseason's transient opportunities?
Cryptocurrency Sector Rotation
Cryptocurrency markets exhibit cyclical sector rotation. Fund flows typically divide a bull market into four stages:
Stage 1: Bitcoin Leads the Charge
- Inflows from both crypto-native and external investors drive Bitcoin's price up.
- Ethereum gradually attracts funds but underperforms Bitcoin until a tipping point.
Stage 2: Ethereum Takes Center Stage
- Ethereum outperforms Bitcoin, sparking debates about its long-term potential.
- Funds begin flowing into major altcoins (top 20 by market cap).
Stage 3: Major Altcoins Rise
- Ethereum continues outperforming Bitcoin.
- Top 50 cryptocurrencies surge, and fundamentally strong new altcoins gain traction.
Stage 4: Altcoin Frenzy
- Blue-chip cryptocurrencies hit new highs.
- Mid-, low-, and micro-cap coins rally indiscriminately.
- Meme culture thrives, and market euphoria peaks.
What Happens After Altseason?
Post-altseason, funds typically follow one of two paths:
- Profit-taking into fiat: Large-scale sell-offs trigger market corrections or even a bear market.
- Recycling into Bitcoin: Funds return to Bitcoin, restarting the cycle.
Is Altseason Here Now?
Recently, DeFi tokens like UNI and SUSHI surged, reducing Bitcoin's dominance from ~70% to 67%. However, altcoin market caps remain below 2017 highs.
👉 According to BlockchainCenter, altseason is confirmed if 75% of the top 50 cryptocurrencies outperform Bitcoin over a period. Current data shows mixed results:
- Past 90 days: 18 altcoins outperformed Bitcoin; 31 lagged.
- Past year: 19 outperformed; 20 underperformed.
- Past month: 23 led; 26 trailed.
Conclusion: While DeFi sectors show promise, broad-based altseason hasn't arrived—but early signs are emerging.
When Will Full Altseason Arrive?
Lessons from 2017:
- Bitcoin's rally (from $3,600 to $20,000) preceded altseason.
- Ethereum surged alongside ICO-driven demand.
- Altcoins peaked as Bitcoin corrected.
2021 Differences:
- Institutional Bitcoin investments add stability.
- DeFi and Polkadot auctions fuel new altcoins.
- Weak Bitcoin remains a prerequisite for altseason.
Potential Triggers:
- Bitcoin stabilizes at ~$34,000.
- Ethereum breaks all-time highs.
- Bitcoin dominance stays below 66%.
- If triggered, altseason may last 1–2 months.
Final Thoughts
Altcoins, like sirens, lure investors with dreams of fortune—but many eventually return to Bitcoin's steadiness.
Key takeaway: Navigating altcoins requires boldness and timely exits.
FAQ
Q: How long does altseason typically last?
A: Historically, 1–2 months, but duration depends on market conditions.
Q: Should I sell Bitcoin to buy altcoins during altseason?
A: Diversification can help, but avoid overexposure to high-risk assets.
Q: What’s the biggest risk during altseason?
A: Volatility. Many altcoins lose >90% value post-altseason.
👉 For real-time market insights, track dominance trends and sentiment shifts.