Altcoin Season Index" considers that there is altseason when most altcoins outperform BTC. 1.
It usually follows a Bitcoin rally, when its price stabilizes and higher returns are sought. 1.
A fall in the Bitcoin domain is a classic indicator of altseason. 1.
Altseasons can last from weeks to months, depending on market conditions. 1.
Altcoins are usually more volatile than Bitcoin, which amplifies both profits and risks. 1.
The altseason, or season of altcoins, is a term used in the cryptocurrency market to describe a period in which altcoins - alternative cryptocurrencies to bitcoin (BTC) - experience a significant increase in their value and performance, frequently surpassing bitcoin itself.
Where does the term altcoin come from?
The term "altcoin" comes from the combination of the English words "alternative" and "coin", and began to be used in the cryptocurrency community to refer to any cryptocurrency other than Bitcoin. Its origin is linked to the emergence of the first alternatives to Bitcoin, such as Namecoin (launched in April 2011) and Litecoin (launched in October 2011), which places its probable appearance around 2011. Its origin is not credited to a single person, but rather to a term created collectively in forums such as BitcoinTalk.
The altseason is usually motivated by the desire of investors to take advantage of high-performance opportunities. Although Bitcoin is considered the main and most stable asset in the world of cryptocurrencies, altcoins, being more volatile, can offer higher returns in a short period of time. However, this greater opportunity is also accompanied by a greater risk due to the instability of these currencies.
How is the altseason defined?
The altseason is defined as a period in which altcoins, that is, any cryptocurrency other than Bitcoin, experience a more aggressive growth than the main cryptocurrency. This, in addition, is generally marked by a decrease in the dominance of Bitcoin (BTC.D), a metric that measures the percentage of the total market capitalization that Bitcoin represents.
This phenomenon usually lasts from a few weeks to months and is characterized by high volatility and opportunities for significant profits, but also by considerable risks.
