Here's Why Every Crypto Investor Needs to Know About Altcoin Season

Core Insights - Altcoin season is a highly anticipated period characterized by significant outperformance of altcoins compared to Bitcoin, typically occurring about a year and a half after a Bitcoin halving [5][6] - The current market conditions suggest that altcoin season may be imminent, particularly with Ethereum often leading the charge [5][6] - Historical trends indicate that altcoin seasons are usually short-lived, lasting from two to six months, but can yield substantial returns for investors [8][9] Summary by Sections Definition and Timing - Altcoin season does not have a fixed schedule or duration, but it is marked by a surge in altcoin prices relative to Bitcoin [2][5] - The next Bitcoin halving is expected in April 2024, which may trigger the upcoming altcoin season [5] Market Dynamics - Bitcoin dominance, which measures the percentage of total crypto market value held in Bitcoin, has been declining, indicating a shift of capital towards altcoins [7] - Investors often seek riskier assets after Bitcoin's momentum slows, leading to increased interest in altcoins [6] Historical Performance - During the 2021 alt season, notable gains were observed, with Solana increasing by 421% and Ethereum by 36% from late August to the end of the year [8]