Is Altcoin Season About to Begin Again?

As the cryptocurrency market continues to evolve, investors are always on the lookout for the next big opportunity.

One such opportunity that may be on the horizon is an altcoin season — a period in crypto bull markets when alternative cryptocurrencies (known as ‘altcoins’) outperform Bitcoin (BTC).

• Click here to invest in the most popular altcoins on Altify.

By understanding and recognising the key leading indicators of an approaching altcoin season, you can better position yourself to maximise your investment returns while recognising and managing your risks.

In this article, Brett Hope Robertson, Head of Crypto Investments at alternative investment platform Altify (FSP 52727), explores three leading indicators showing that another altcoin season could be imminent.

What is Altcoin Season?

Altcoin season, often referred to as “altseason,” is a period in the cryptocurrency market where alternative cryptocurrencies to Bitcoin (BTC) experience significant price increases, and outperform Bitcoin.

There are thousands of different cryptocurrencies in circulation but the largest and most well known altcoins include:

All of these altcoins can be purchased fee-free* on Altify for a short period of time. Read to the end to learn more. During altseason, crypto traders shift their focus and investment capital from Bitcoin to other smaller cryptocurrencies. This results in a lot of new investor capital being redirected to the altcoin space, driving large short term price movements of different coins.

The allure of altseason is much like the thrill of gambling—some altcoins can deliver staggering short-term returns, with lucky investors seeing 2x to 50x gains. However, just as in gambling, the risks are high. Only invest what you’re prepared to lose.

How Much Did Altcoins Outperform in the 2021 Altseason?

The 2021 altseason showed exponential growth for the alternative coins. Below you can see the performance of the largest 8 alt coins vs Bitcoin (BTC) at the time of the 2021 altseason.

We notice that nearly all assets outperformed Bitcoin (BTC) during this period, often by significant margins.

While Binance Coin (BNB) and Cardano (ADA) delivered some of the highest returns, Altify’s Top 10 Equally Weighted (T10E) and Top 20 Equally Weighted (T20E) crypto portfolios offered investors a smart way to capitalise on altseason without the challenge of trying to pick individual crypto winners. These crypto portfolios, called ‘Crypto Bundles’ provide risk-reducing diversification across a ready-made portfolio of altcoins and auto-update each month as the crypto market changes ensuring investors stay up to date with the fast moving crypto market.

The big question is how can you tell when the altseason is coming?

3 Reasons 2025 Could Mark the Next Altseason

1. BTC Has Outperformed Altcoins and Could be Due For a Correction

A key metric used in seeing whether Bitcoin has over or underperformed altcoins is called ‘Bitcoin dominance’. Bitcoin dominance represents Bitcoin’s share of the total cryptocurrency market. When Bitcoin dominance is increasing it means that Bitcoin is outperforming all other altcoins in the market and gaining greater market share.

Alternatively, when Bitcoin dominance is decreasing it means altcoins are outperforming Bitcoin, resulting in the largest cryptocurrency losing dominance – a clear sign of an altseason.

Looking at the chart of Bitcoin dominance above, we can see that the 2021 altseason the (green box) was preceded by over 1,000 days of Bitcoin outperformance (red channel of rising dominance).

While history doesn’t always repeat itself, it often rhymes, and we can see a stark similarity of a rising Bitcoin outperformance that is coming up to 1,000 days long.

Based on the past crypto cycle, we could start to see a fall in Bitcoin dominance in the coming weeks or months that moves into the purple box and allows for the start of what could be the 2025 altseason.

2. BTC Breaking its All-Time High (ATH) Signalled an Altseason in 2021

Bitcoin (BTC) often leads the market, setting trends that altcoins typically follow. Historically, a critical precursor to every “altseason” has been BTC breaking its previous bull market highs and entering a phase known as ‘price discovery’.

This happens because when Bitcoin surpasses its all-time highs, it draws significant media attention, sparking fresh excitement and attracting new investor interest.

As Bitcoin continues to climb and new highs are reached, investors often look to take profits and reinvest their gains into smaller altcoins, seeking the so-called ‘catch-up trade’ — this brings about altseason.

Looking at the chart of Bitcoin’s price above, we can see that the 2021 altseason (green box) was preceded by Bitcoin’s price breaking above its 2017 all-time high, followed by a small window of a few weeks where Bitcoin’s dominance still increases post initial price breakout (yellow box).

Currently, Bitcoin has broken above its 2021 all-time high and is in its yellow box moment as Bitcoin dominance is still rising, but if history repeats itself, then this period will be short-lived with an altseason following.

3. The Indicator For the Altcoin Market (TOTAL2) is Forming a Bullish Breaking Out Pattern

The TOTAL2 index tracks the performance of all cryptocurrencies except Bitcoin. It’s a good way to measure how altcoins are doing overall.

When the TOTAL2 index increases, it means more money is flowing into altcoins and altcoin prices are increasing in value. When the TOTAL2 index decreases it shows a drop in altcoin value and returns.

Looking at the chart of the TOTAL2 index against Bitcoin dominance above, we can see that the 2021 altseason (the first green box in both charts), saw the TOTAL2 index rise over 720% while Bitcoin’s dominance dropped to 40%.

Currently, the TOTAL2 index is showing a bullish price pattern called the ‘cup and handle’”, which indicates that it’ could be getting ready for a breakout and to outperform. This pattern coupled with a rising bitcoin dominance that looks to be nearing its historical end, could mean an altseason is closer than we think.

How Can You Capitalise on the Upcoming Altseason Opportunity?

To make the most of the impending altcoin season, investors should adopt a strategic approach:

1. Diversify Your Portfolio: Allocate funds across various altcoin sectors, including AI, memecoins, and DeFi, to spread risk and maximise potential returns. Diversification ensures that your investments are not overly reliant on a single asset or sector that might not be in favour this altseason.
2. Monitor Key Indicators: Keep a close eye on Bitcoin dominance and the TOTAL2 index, to gauge market sentiment and identify the optimal timing for entering the altcoin market.
3. Invest in Leading Sectors or the Overall Market: If you simply want to take advantage of this altseason without having to risk picking a specific token, look to invest in crypto market index trackers like the Altify Top 10 or Top 20 Equally weighted Crypto Bundle, which gives its investors increased exposure to altcoins through one single investment.
   If you wish to focus on individual tokens, look at top-performing sectors such as AI tokens, memecoins, DeFi, and smart contract layer-1 blockchains to find the best performers. These sectors are likely to drive significant growth during altseason, offering substantial investment opportunities.
4. Use Reliable Platforms with crypto indexes and the largest range of altcoins: Utilise regulated platforms like Altify to trade and invest in their market-leading crypto indexes and 35+ altcoins. Altify provides access to a wide range of tokens, ensuring that you can easily diversify your investments and capitalise on the upcoming altseason.

Altify Altcoin Fee-Free Promotion

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Risk Disclaimer

Altify SA Capital (Pty) Ltd (FSP 52727) and Altify SA DAS (Pty) Ltd (FSP 53289) are both authorised financial services providers (FSPs).

This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the crypto assets mentioned.

Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor.

It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies.

Investors are solely responsible for their investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital.

Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.

Please refer to the General Risk Disclosures and Crypto Risk Disclosures on Altify’s website for more information. Investments should only be undertaken by individuals who fully understand these risks.

For additional details, please visit www.altify.app.