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Altcoin Season

Definition

Altcoin Season — A market phase where altcoins broadly outperform Bitcoin as capital rotates from BTC into smaller-cap cryptocurrencies, typically occurring during late-stage bull markets.

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What Is Altcoin Season?

Altcoin season (alt season) is a period when altcoins as a group significantly outperform Bitcoin, with BTC dominance falling as capital rotates into higher-risk, higher-reward tokens. The Altcoin Season Index measures this by tracking whether 75%+ of the top 50 altcoins outperformed BTC over the trailing 90 days.

How Altcoin Seasons Work

The typical crypto cycle flows through phases:

  1. Bitcoin leads the rally while dominance rises
  2. Large-cap alts (ETH, SOL) begin outperforming
  3. Mid-caps and sector leaders surge
  4. Micro-caps and memecoins pump (late stage)
  5. BTC dominance rises again as the cycle tops

Why It Matters for Traders

Timing altcoin season entries and exits is one of the most profitable crypto strategies. Entering altcoins too early means underperforming BTC. Holding altcoins too late into the cycle means being caught in the rotation back to BTC (or to stables). BTC dominance, ETH/BTC ratio, and sector rotation metrics are key signals for timing alt season exposure.

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