What is an Altseason on the cryptocurrency market

The second half of the year is the time when cryptocurrencies on the market are growing faster than bitcoins. This season usually lasts 1-2 months and follows a period of strong bitcoin growth. The ratio of bitcoin’s market capitalization to the market capitalization of all other cryptocurrencies is known as the finite time index. This indicator is expressed in percentages, which often range from 10 to 100%. First, a few comments about alternative currencies. If you miss the subtleties, then altcoin is anything but bitcoin (all other crypto assets). Bitcoins are the foundation of the entire crypto sector. This acts as the main driving force of the market, as a result of which prices rise higher and higher.

The market is collapsing as bitcoin prices decline. In any cryptor, Bitcoin is a key indicator. Any leveling of the playing field leads to the fact that the market reacts extremely harshly. The stability of cryptocurrencies depends on the signal. Because of this, when you find out that Bitcoin has fallen by 7-10% in one day, altcoins have most likely also decreased significantly (by 2-3 times). The dominance indicator is an important additional signal for the bitcoin price. Any price tracking program can show this. Let’s take the center of the website block chain as an illustration. For example, on the Blockchaincenter website.

The percentage of Bitcoin in the entire capitalization of the cryptocurrency market, which means its dominance. The dominance of bitcoin, for example, would be demonstrated if the total market capitalization of cryptocurrencies was $ 2 trillion, and bitcoin was estimated at $ 800 billion. This would amount to 40% of bitcoin’s market share. The off-season, when altcoins grow significantly faster than bitcoins, is determined using the above-mentioned signs. The top 100 cryptocurrencies on CoinMarketCap are often the first to receive funding from bitcoin. This is due to the fact that most cryptocurrencies have incredible growth rates and are usually more profitable than bitcoins. It is extremely important to invest in crypto, as it will not disappear in the medium or long term.

Periods when Bitcoin was king.

When bitcoin expands faster than other cryptocurrencies, this is known as the “bitcoin season” in the cryptocurrency market. With the altcoin season, periods of bitcoin supremacy come and go. Cryptocurrency investors are starting to buy bitcoins more often as their prices rise, increasing their capitalization and strengthening their dominance. When there is significant dominance, some investors eventually begin to cash out and sell their assets, moving to more protective assets (USDT, DAO, etc.), as we have already discussed, and buying other cryptocurrencies. Although some alternative coins can make a profit of up to 1,000,000%, it is important to understand that they also carry higher risks and can lose value just as quickly.

According to the Blockchain Center, bitcoin’s market share is currently 25% at a cost of about $47,100 per unit, indicating that it is still in the early stages of development. It all depends on a lot of variables, mainly on the global geopolitical situation and the state of bitcoin, but it is quite possible that this will happen this year.