Altseason is a period in the cryptocurrency market when altcoins (all cryptocurrencies except bitcoin) show significant growth in relation to bitcoin and the US dollar.
Signs of the onset of alt-season for beginners:
- Bitcoin dominance is in decline: BTC's share of total market capitalization drops.
- Upside in altcoins: Many altcoins rise at a faster pace than bitcoin.
- Increased trading volume: Activity on altcoin exchanges is increasing.
- More news about altcoins appears in the media.
- Exchanges start to actively add new altcoins.
It’s no easy matter to determine the exact time when the altseason gets under way, since many factors influence the cryptocurrency market. Considering the current situation with bitcoin and the overall market dynamics, the altseason may begin under the following conditions:
- Bitcoin price stabilization: If BTC volatility decreases, investors may start looking for higher returns in altcoins.
- Improvement in overall market sentiment: Reduced concerns about increased BTC supply from the German government and Mt. Gox.
- Altcoins with strong fundamentals and innovative solutions may attract more attention.
- Decline in the DXY index amid expectations of a US Federal Reserve rate cut in September.
- Growth of US stock indices.
- Approval and launch of spot Ethereum ETFs.
Potentially promising altcoins may include:
- Projects in the field of decentralized finance (DeFi)
- Smart contract platforms
- Tokens related to blockchain scalability
- AI-focused cryptocurrencies