Altseason: Understanding the Explosive Cycle of Different Coins

Cryptocurrency markets do not always move in a single direction. They go through distinct phases, each offering different opportunities and challenges. One of the most notable phenomena is altseason – a period when altcoins (other cryptocurrencies besides Bitcoin) outperform Bitcoin.

By the end of 2025, the cryptocurrency market is in an optimistic mood. Bitcoin is trading around $88.62K, with a market dominance of 55.099%, while Ethereum stands at $2.97K. These signs suggest that altseason may be about to start or is in its early stages. Understanding what altseason is, how it works, and how to trade during this phase will help investors make smarter decisions.

What is Altseason?

Altseason (altcoin season) refers to a period in the cryptocurrency market when the total market capitalization of altcoins surpasses Bitcoin in terms of price growth rate. It’s not that Bitcoin’s price is lower, but that these coins are increasing much faster and attracting larger capital flows.

During altseason, market attention shifts. When Bitcoin’s price rises too high and becomes less accessible to ordinary investors, they seek opportunities in other coins. This is when capital begins flowing into altcoins, leading to skyrocketing performance.

Differentiating Between Altseason and Bitcoin Season

These two phases operate completely differently:

Altseason is characterized by:

• Rapid increases in both value and trading volume of altcoins
• Investors focusing on new projects, advanced technology, or emerging trends
• Bitcoin’s market dominance decreasing, often below 50%
• Many altcoins reaching all-time highs (ATH)

Bitcoin Season is the opposite:

• Bitcoin dominates attention and capital flows
• Bitcoin’s market dominance increases significantly
• Altcoins slow down or lose value
• Investors seek safety, returning to Bitcoin or stablecoins

This transition often occurs when the market shifts from optimistic to pessimistic, or when Bitcoin becomes too expensive for average investors.

History of Altseason: Past Boom Periods

###2017-2018: The First ICO Bubble

This period was the first and most insane altseason. Bitcoin started with 87% market share but quickly dropped to an unprecedented low: just 32% in January 2018.

What does this number indicate? It means that 68% of the total cryptocurrency market capitalization was in altcoins. The total market cap exploded from $30 billion at the start of 2017 to over $600 billion within a year. Countless altcoins hit their all-time highs for the first time.

Why? ICO fever – the initial coin offering craze. New projects emerged daily, each promising to be “the future of blockchain.” Speculation exploded, then the bubble burst. As a result, from 2018 to 2019, the market entered a downturn, with most altcoins losing 90% of their value.

###2021: Altseason 2.0 and Dream Breakthrough

2021 was the second and larger altseason. Bitcoin’s dominance started at 70%, then dropped to 38% mid-year, while altcoins surged from 30% to 62%.

This time, it wasn’t just ICOs. It was DeFi, NFTs, memecoins – everything exploded simultaneously. Notable altcoins like Solana, Polygon, Dogecoin, Shiba Inu, PancakeSwap, and BNB saw enormous gains. Bitcoin hit $69,000, and the total cryptocurrency market cap surpassed $3 trillion for the first time at the end of the year.

###2023-2025: Diversified Altseason

Current optimism is driven by different reasons. It’s not ICOs or NFT mania, but expectations that new sectors will explode: AI tokens, GameFi, metaverse, DePIN (Decentralized Physical Infrastructure Networks), and Web3. Coins like Arweave, JasmyCoin, dogwifhat, Worldcoin, and Fetch.ai are beginning to show strong growth.

Warning Signs That Altseason Is Starting

There’s no foolproof way to predict altseason, but the following indicators can help you recognize its onset:

Bitcoin dominance index: When this drops below 50%, it’s a golden signal for altseason.

Altcoin trading volume: When trading volume surges across all altcoins, it indicates investor interest shifting.

Market sentiment: Widespread optimism across the cryptocurrency market. Positive news, major events, or regulatory approvals can trigger it.

Activation events: Approvals of ETFs, major technological upgrades, or favorable regulation news can spark altseason.

Market cap ratio: When the market cap ratio of altcoins relative to Bitcoin increases significantly, it suggests investors are shifting focus to other coins.

Trading Strategies During Altseason

Conduct thorough research before acting

Not all altcoins are worth investing in. Before investing, research:

• What problem does the project solve?
• Who is the development team?
• What technology backs it?
• How large is the potential market?

Don’t get caught up in hype without understanding the fundamentals.

Diversify investments

Golden rule: don’t put all your eggs in one basket. Spread your capital across different promising altcoins. This minimizes risk if one project fails.

Set realistic expectations

Altseason can bring huge profits, but don’t expect to get rich overnight. The market can be highly volatile, with prices fluctuating within hours. Be mentally prepared.

Risk management

Always set profit targets and stop-loss orders before entering trades. If a position is losing money, have a plan to exit.

Hidden Risks During Altseason

Extreme volatility

Altcoins are much more volatile than Bitcoin. They can increase 300% in a week, then drop 80% in the following days. You need a strong mindset to endure this.

Bubbles and crashes

Overhype and speculation can create price bubbles. When they burst, everything falls freely. Latecomers will suffer significant losses.

Scams and rug pulls

Some projects are scams from the start. Developers raise funds from investors and then disappear with all the money. Always verify the credibility of a project before investing.

Liquidity risk

Some altcoins have weak liquidity. You can buy in, but when you need to exit, no one will buy. Prices can plummet when you try to sell.

Impact of Regulations on Altseason

Regulatory changes deeply influence altseason. When countries tighten cryptocurrency scrutiny, the market can panic. For example, when ICO regulations tightened at the end of 2018, altseason ended immediately.

Conversely, when regulations loosen – such as approving Bitcoin ETFs or providing clear legal frameworks for cryptocurrencies – it can stimulate altseason. Institutional investors will participate, capital flows increase, and altcoins boom.

Always monitor global regulatory news. They can change the game within hours.

Conclusion

Altseason is a cyclical phenomenon in the cryptocurrency market, marking a shift from Bitcoin to other coins. It offers great opportunities for savvy investors but also carries significant risks.

The key to success during altseason is: thorough research, diversification, strict risk management, and staying updated. Don’t rush, don’t be greedy—stick to your strategy. Disciplined traders will be the winners in altseason.

Read More

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