What Is “Altcoin Season” and How Is It Related to a Decline in Bitcoin Dominance?
"Altcoin season" refers to a period when alternative cryptocurrencies (altcoins) outperform Bitcoin, often experiencing significant price surges. This phenomenon is directly correlated with a decline in Bitcoin Dominance.
It typically occurs when capital flows from a stabilizing or high-priced Bitcoin into riskier, smaller-cap altcoins in search of higher returns. As investors buy altcoins, their market capitalizations increase relative to Bitcoin's, causing the Bitcoin Dominance ratio to fall.
This cycle often follows a strong bull run in Bitcoin.