Altcoins
Is Altcoin Season Starting? BTC dominance fades but crypto market grows by $210 billion
What is Altcoin Season?
Altcoin Season is popular crypto terminology that refers to a phase of a market boom cycle where alternative cryptocurrencies (altcoins) outperform Bitcoin (BTC) and Ethereum (ETH)
Historical trends have illustrated that crypto boom cycles often begin with the influx of capital into the BTC And ETH. But when the market rebound gains momentum and turns into a full-blown bull rally, investors begin to reallocate their capital into small-cap altcoins and memecoins.
Crypto investors often turn to altcoins (all other cryptocurrencies besides BTC and ETH) during a market rally for two main reasons: to diversify their portfolio and amplify their gains.
As the current crypto market rally enters its third consecutive month, strategic investors have started looking for signals to determine whether altcoin season has begun.
Altcoin season kicks off with Bitcoin dominance down 3% this week
Altcoin season appears to have kicked off, based on some of the critical on-chain data trends seen this week. Bitcoin Dominance (BTC.D) is a major indicator that offers some early clues about the start of the altcoin season.
BTC.D represents Bitcoin market dominance, that is, the share of the total cryptocurrency market capitalization that goes to BTC.