Altcoin Season: How Investors Can Spot It Before the Crowd
Altcoin season occurs when 75% of the top 50 cryptocurrencies outperform Bitcoin over a 90-day period, and is characterized by a rotation of capital from Bitcoin to other cryptocurrencies. Historically, altcoin seasons last between four and twelve weeks, with large-cap altcoins leading early and smaller coins surging later.
Altcoin season is a period when cryptocurrencies other than Bitcoin rise faster than Bitcoin. It is measured when 75% of the top 50 cryptocurrencies outperform Bitcoin over 90 days, excluding stablecoins. The season is characterized by a rotation of capital from Bitcoin to altcoins, often triggered by a decline in Bitcoin dominance. Historically, altcoin seasons last between four and twelve weeks, with distinct phases: large caps like Ethereum lead early, mid-caps gain traction in the middle, and smaller coins surge later. Bitcoin dominance is a key signal for altcoin season, with a decline indicating capital rotation to altcoins. In 2017, Bitcoin's dominance dropped from 85% to 37% within a year, coinciding with a strong altcoin surge. Investors can use this information to make informed decisions before the crowd piles in.
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