- Altseason is a period where altcoins outpace Bitcoin in returns.
- Five critical signals, including market sentiment and on-chain data, could ignite the next boom.
For the uninitiated, an altcoin season – or “altseason” – is a period where altcoins, cryptocurrencies other than Bitcoin [BTC], outpace BTC in returns. It’s when the spotlight shifts and traders scramble to find the next big mover.
But identifying whether we’re on the brink of such a rally isn’t simple.
In this guide, AMBCrypto will explore five critical signals that could ignite the next boom. From market sentiment to on-chain data, these indicators could help you stay ahead of the curve in 2025.
Whether you’re a seasoned investor or just starting, understanding these trends could be the edge you need.
A shift in dominance: Altcoins vs. Bitcoin
Bitcoin Dominance (BTC.D), reflecting Bitcoin’s share of the total crypto market, often declines during altseason as capital flows into altcoins.
At press time, BTC.D sat at 60.7%, up from 56.8% last month, while altcoin dominance has dropped to 29.3% from 31.3%.
Ethereum has also slipped to 10.0%, down from 11.9%.
Bitcoin recently hit a yearly dominance high of 61%, signaling its current market strength. However, historical altseasons typically begin after BTC dominance peaks and starts to fall, creating opportunities for altcoins to rally.
If BTC dominance dips below 60% and altcoins regain traction, it could signal the start of an altcoin rally. The balance of dominance remains a key indicator to watch.
Ethereum’s role as an altcoin market leader
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Author: Samantha LKM