altseason

Altseason, short for altcoin season, is a colloquial term used in cryptocurrency communities to describe a period in a market cycle when altcoins—tokens other than Bitcoin—outperform Bitcoin in price appreciation. The concept is not a formal financial designation but a pattern observed when a broad set of non-Bitcoin assets experience faster gains, often accompanied by rising trading volumes and shifting capital away from Bitcoin.

Indicators typically cited for altseason include a falling Bitcoin Dominance Index, increasing market capitalization share held by altcoins, and disproportionately strong performance from mid- and small-cap tokens. Drivers can include liquidity inflows into decentralized finance, layer-2 scaling solutions, new project launches, and renewed risk appetite after Bitcoin rallies. Market participants monitor relative performance, correlations, and on-chain metrics to gauge the onset and length of altseason.

Critics note that altseason is highly variable and not guaranteed. High returns in some alts may coincide with declines in others, and price outperformance can be short-lived or driven by speculative trading. Investors are cautioned to consider fundamentals, risk management, and the volatile nature of crypto markets.

In practice, the term describes a broader shift where capital rotates from Bitcoin into a wide range of altcoins, sometimes following notable Bitcoin rallies or macro events. The concept has persisted since the early days of crypto and remains a common shorthand for cyclical performance patterns across the sector.