Altcoin season has begun! You probably heard this term a lot lately. So, is it true? And if so, what can you prepare for it?
What is Altcoin Season?
“Altcoin” is a term used to refer to any cryptocurrency other than Bitcoin, combining “alternative” and “coin.” Altcoins represent a diverse group of digital currencies introduced as alternatives to Bitcoin.
When people mention “altcoin season,” they are describing a period in the cryptocurrency market where alternative cryptocurrencies (altcoins) experience significant price increases, outperforming Bitcoin. This term implies that investors are redirecting their focus and capital from Bitcoin to various altcoins, leading to a surge in their prices.
Bitcoin dominance is a metric often used to gauge altcoin season. A decrease in Bitcoin dominance indicates a declining overall market share of Bitcoin relative to other cryptocurrencies, signaling a potential flow of funds into altcoins and a bullish trend for them.
Altcoin seasons are characterized by heightened trading volumes, increased market activity, and notable price movements in various altcoins. However, it’s important to note that predicting or defining specific seasons in the highly volatile cryptocurrency market can be challenging.
Altcoin seasons can vary in duration and intensity, subject to market sentiment, trends, and external factors.
The Altcoin Season 2024.
Altcoin Season is identified when 75% of the leading 50 cryptocurrencies outperform Bitcoin during the previous season, spanning 90 days. Exclusions from the Top 50 include Stablecoins (such as Tether, DAI) and asset-backed tokens (like WBTC, stETH, cLINK).
At the time of writing (January 16th, 2024), according to Altcoin Season Index, the Altcoin Season has begun!
Next, we will discuss which Altcoin should you keep your eyes on and the signs of an Altcoin Season so you can prepare for any futures Altcoin Seasons.
Which Altcoin you should keep your eyes on?
In mid-January 2024, the SEC approved the first 11 Spot Bitcoin ETFs. This marks a historic milestone for the cryptocurrency market. Immediately after approval, the trading volume of these Spot Bitcoin ETFs surpassed the 1-billion-dollar mark.
This led to a surge in the price of Bitcoin. However, shortly after, the price of Bitcoin experienced a correction. Interestingly, this correction served as an indicator that the Altcoin season was underway, as the prices of alternative cryptocurrencies began to rise while Bitcoin stabilized sideways.
So, what Altcoin may rise up?
Disclaimer: The information provided here is intended for informational purposes only and should not be considered as financial advice. The mention of specific events, approvals, and market movements is purely speculative and not guaranteed to occur.
Readers are strongly advised to conduct their own thorough research and analysis before making any investment decisions.
ERC-20 tokens
Talking about Altcoins, the largest one is undoubtedly Ethereum and its ecosystem. Therefore, when discussing the up-chain, ERC-20 tokens are a must-mention, particularly considering Ethereum’s prominence.
Moreover, with the approval of BTC ETF, many are now anticipating an ETH ETF. This further intensifies the hype around ERC-20 tokens, evident in the substantial rise in ETH prices following the BTC ETF approval.
Beyond Ethereum, two other notable chains with potential surges are Optimism and Arbitrum. Why? Because these chains host the largest DEX platforms on the ETH network. So, it would be worth your time to look at OP and ARB token.
Moreover, tokens from the major DEX platforms are also worth paying attention to. Notable names include:
BRC-20 tokens
we cannot overlook tokens following the BRC-20 standard, especially when Bitcoin stands as the largest cryptocurrency. After the BTC ETF, there is a strong possibility that BRC-20 tokens will show positive signs.
Below is a list of BRC-20 tokens arranged by Market Cap, based on coinmarketcap.com.
Two notable names are ORDI and SATS, with a Market Cap surpassing the one-million-dollar mark, as they are listed on Binance. However, we might set these aside and focus on projects with Market Caps ranging from 5-15 million dollars, with the expectation that these projects might experience price surges.
Nevertheless, BRC-20 tokens remain somewhat uncertain, lacking many clear use cases. Therefore, if considering investment, it’s advisable to allocate a small portion, await opportunities, and mitigate the risk to your capital.
Overall
Here are our observations regarding the ongoing Altcoin Season. However, we’d like to remind readers once again that these are subjective opinions and not investment advice.
Cryptocurrency is a highly volatile asset, and nothing guarantees that the mentioned observations will materialize. Therefore, please read the article as a reference and be sure to conduct thorough research, consulting various sources before making investment decisions.
The signs of an Altcoin Season?
Identifying the signs of an upcoming altcoin season in the cryptocurrency market can be subjective and speculative. However, some potential indicators that traders and analysts may observe include:
- Bitcoin Dominance Decline: A decrease in Bitcoin dominance, meaning a smaller share of the total cryptocurrency market cap held by Bitcoin, could suggest increased interest in altcoins.
- Increased Trading Volumes: Rising trading volumes for various altcoins, especially coupled with notable price movements, may indicate heightened market activity and growing investor interest.
- Positive Market Sentiment: Positive sentiment in the broader cryptocurrency community, often fueled by favorable news, developments, or technological advancements in specific altcoins, could contribute to the onset of an altcoin season.
- Technical Analysis Patterns: Traders often use technical analysis to identify potential trend reversals or shifts in market sentiment. Chart patterns, such as bullish formations for specific altcoins, may be considered by analysts.
- Social media and Online Chatter: Increased discussions, positive sentiments, and rising interest in various altcoins on social media platforms and online forums might suggest growing attention and participation in those projects.
- Launch of New Projects or Upgrades: The introduction of new blockchain projects, updates, or technological improvements within the altcoin space can generate excitement and contribute to a potential altcoin season.
It’s crucial to approach such observations with caution, as the cryptocurrency market is inherently unpredictable. Investors should conduct thorough research, stay informed about market developments, and consider various factors before making any investment decisions.
Additionally, seeking advice from financial professionals is advisable, given the risks associated with cryptocurrency investments.
KEYRING PRO Wallet- protect your assets.
“Altcoin Season” and “Up-chain” are exciting events for any cryptocurrency investor. Therefore, everyone needs to equip themselves with the necessary knowledge, accompanied by a reliable crypto wallet.
The KEYRING PRO Wallet is an excellent choice for you. It is a secure and user-friendly wallet with an intuitive UI and simple operations. Additionally, this wallet provides the freedom to add any Altcoin you desire.
Follow these steps to get started with KEYRING PRO Wallet:
- Download the KEYRING PRO Wallet.
- Create your wallet address.
- Go to your portfolio.
- Select “Add Token.”
- Choose the chain of the token.
- Input the token contract address.
- Finish adding the new token.
Prepare yourself for Altcoin Season and Up-chain with the KEYRING PRO Wallet – a secure, user-friendly, and customizable solution for cryptocurrency enthusiasts.
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