When Will the Next Altcoin Season Start?

As the cryptocurrency market continues to evolve, many enthusiasts and investors are eagerly anticipating the onset of the next “altcoin season“. This term refers to a period when alternative cryptocurrencies (altcoins) experience significant price increases, often outpacing the growth of Bitcoin. But when can we expect this thrilling phase to begin?

What is Altcoin Season?

Altcoin season is a market cycle where altcoins (any cryptocurrency other than Bitcoin) see substantial gains in value. Historically, this phenomenon occurs when Bitcoin’s dominance — its share of the total cryptocurrency market cap — begins to wane. As investors seek higher returns, they often diversify into altcoins, driving their prices up.

Historical Patterns

Looking back, altcoin seasons have followed notable Bitcoin bull runs. For instance, in 2017, after Bitcoin hit new all-time highs, altcoins like Ethereum, Ripple, and Litecoin saw exponential growth. Similarly, the early months of 2021 saw altcoins surge after Bitcoin’s significant price increases in late 2020.

Current Market Conditions

As of now, Bitcoin’s dominance stands at around 54%, indicating that it still commands a substantial portion of the total cryptocurrency market cap. However, this dominance can shift quickly, setting the stage for altcoin season.

Yesterday’s approval of spot Ethereum ETFs marks a significant milestone for the crypto market. This development could be a catalyst for the next altcoin season, as it increases institutional interest and accessibility to Ethereum, the leading altcoin.

Why Have Altcoins Underperformed?

Several factors have contributed to the underperformance of altcoins this cycle:

1. Bitcoin’s Dominance: Bitcoin has remained the primary focus for many institutional investors, soaking up much of the capital flowing into the crypto market.
2. Regulatory Uncertainty: Ongoing regulatory scrutiny has created an environment of caution, particularly affecting smaller, less established altcoins.
3. Market Maturity: As the market matures, there’s a growing emphasis on projects with strong fundamentals and real-world use cases, rather than speculative investments.
4. Bitcoin Spot ETF: The recent approval and interest in Bitcoin spot ETFs have also concentrated investment in Bitcoin, further delaying the altcoin season.

When Will the Altcoin Season Start?

Predicting the exact timing of altcoin season is challenging, but several indicators can provide clues:

• Bitcoin Consolidation: Once Bitcoin stabilizes after a significant rally, investors often rotate their profits into altcoins.
• Decreased Bitcoin Dominance: A noticeable drop in Bitcoin’s market dominance percentage is a strong signal that an altcoin season might be imminent.
• Institutional Moves: Increased institutional investment in altcoins, as seen with the Ethereum ETF approval, could spark renewed interest in the broader altcoin market.

The Impact on the Crypto Market

When altcoin season begins, we can expect a dynamic shift in the market. Altcoins with solid fundamentals and unique value propositions are likely to see substantial price increases. This shift will not only create lucrative opportunities for investors but also foster innovation within the blockchain space.

My eToro Portfolio: Poised for Altcoin Season

For those following my eToro portfolio, it’s important to note that it is primarily allocated to altcoins. This strategic positioning is designed to maximize returns when the altcoin season kicks off. In the last bull market, my portfolio achieved impressive gains of over 218% in 2020 and 171% in 2021. As we anticipate the next altcoin surge, my portfolio is well-positioned to outperform Bitcoin.

I encourage current and new copiers to remain invested in my portfolio throughout 2024 and 2025, at least, to fully capitalize on the potential gains from the upcoming altcoin season.

If you’re interested in discovering more about my portfolio and my investment strategies, feel free to get in touch.