What Is the Altcoin Season Index?

Cryptocurrency markets move in cycles. While Bitcoin is often the star of the show, there are times when smaller digital assets - called altcoins - outperform it in terms of growth. This exciting phase is known as altcoin season, and it’s when many traders start shifting their attention (and money) toward alternative coins in hopes of bigger gains.

But how do you know if an altcoin season is happening or just around the corner? That’s where the Altcoin Season Index comes in. It’s a simple tool that shows whether altcoins are currently outpacing Bitcoin. In this guide, we’ll explain what altcoins are, what an altcoin season means, how the Altcoin Season Index works, and strategies you can use to navigate the market more confidently.

What Is an Altcoin?

An altcoin, short for “alternative coin,” refers to any cryptocurrency other than Bitcoin. While Bitcoin was the first and remains the most well-known cryptocurrency, the broader market has seen the emergence of thousands of alternative digital assets with various features, purposes, and use cases.

Some altcoins are designed to improve upon Bitcoin’s limitations, offering faster transaction speeds or different consensus mechanisms. Others, such as Ethereum, introduced innovations like smart contracts, enabling decentralized applications and services. Altcoins span a wide range of categories, from payment coins and infrastructure platforms to tokens used in decentralized finance (DeFi), gaming, and even internet memes. Examples include Ethereum (ETH), Solana (SOL), Cardano (ADA), Litecoin (LTC), and Dogecoin (DOGE).

What Is Altcoin Season?

Altcoin season, often shortened to “altseason,” refers to a period in the cryptocurrency market when a significant number of altcoins outperform Bitcoin in terms of price growth. This shift in market momentum typically sees investors and traders moving capital from Bitcoin into altcoins in search of higher returns.

Altcoin seasons often follow strong Bitcoin rallies. Once Bitcoin's growth stabilizes, traders may begin allocating funds to altcoins, causing their prices to surge. A hallmark of an altcoin season is a noticeable drop in Bitcoin's market dominance, a metric that measures Bitcoin's share of the total cryptocurrency market capitalization. During this time, many altcoins experience rapid gains, often outpacing Bitcoin by a wide margin. However, these periods can be volatile and are usually short-lived, making timing and strategy especially important for participants.

What Is the Altcoin Season Index?

Altcoin season index chart on Bitget

The Altcoin Season Index is a market indicator designed to measure whether altcoins are currently outperforming Bitcoin over a recent period, typically the past 90 days. It helps investors identify whether the market is in a “Bitcoin season,” where Bitcoin leads in performance, or an “altcoin season,” where a majority of alternative cryptocurrencies are outperforming Bitcoin.

The index was popularized by platforms such as CoinMarketCap. It works by comparing the performance of the top cryptocurrencies, usually the top 50 or 100 by market capitalization, to that of Bitcoin. If a large percentage of these altcoins (commonly 75% or more) have delivered better returns than Bitcoin in the last 90 days, the index classifies the period as an altcoin season. If fewer altcoins are outperforming Bitcoin, the market is considered to be in a Bitcoin season. The index is presented as a score from 0 to 100, where a score above 75 suggests an altcoin season and a score below 25 indicates a Bitcoin season.

How the Altcoin Season Index Works

The Altcoin Season Index provides a structured way to evaluate whether altcoins are currently outperforming Bitcoin:

1. Selection of Coins

The index typically considers either the top 50 or top 100 cryptocurrencies by market capitalization, excluding Bitcoin.

2. Performance Comparison

It examines how each of these altcoins has performed over the last 90 days relative to Bitcoin’s price performance during the same period.

3. Threshold Calculation:

● If 75% or more of the altcoins have outperformed Bitcoin, the market is considered to be in an altcoin season.

● If 25% or fewer have outperformed Bitcoin, it is classified as a Bitcoin season.

● A score between 25% and 75% indicates a neutral or transitional phase.

4. Index Score

The results are displayed as a score ranging from 0 to 100. A score closer to 100 reflects strong altcoin dominance, while a score closer to 0 reflects Bitcoin dominance.

5. Use as a Retrospective Tool

The index is based on historical data. It does not predict future market conditions but helps investors understand recent trends and adjust strategies accordingly.

Strategies to Follow During Altcoin Season

Participating in an altcoin season can offer significant opportunities, but it also comes with increased risk. Here are some strategies to help navigate the market more effectively:

● Diversify Your Portfolio: Avoid concentrating your investment in a single altcoin. Instead, spread your funds across different sectors and market caps (e.g., large-cap coins like Ethereum, mid-cap projects, and smaller speculative tokens). Diversification helps reduce risk and can improve the chances of capturing gains.

● Set Risk Limits and Use Stop-Loss Orders: The altcoin market can be extremely volatile. Decide in advance how much you are willing to risk and use stop-loss orders to automatically sell a coin if it drops below a certain price. This helps protect your capital and reduce emotional decision-making.

● Take Profits Gradually: When a coin has performed well, consider taking partial profits at key milestones (e.g., after a 2x or 3x increase). Locking in gains while leaving some position open allows you to benefit from further upside while managing risk.

● Stay Informed on Market Trends: Monitor news, social media, and analytics platforms to stay updated on market sentiment. Track metrics such as Bitcoin dominance, trading volume, and on-chain activity. These indicators can help you anticipate shifts in momentum.

● Avoid FOMO (Fear of Missing Out): Resist the urge to chase coins that have already surged significantly. Buying into a project at its peak can lead to losses if the price corrects. Focus on coins with strong fundamentals or favorable setups rather than hype-driven tokens.

● Use Dollar-Cost Averaging (DCA): If you're unsure about timing the market, consider investing a fixed amount at regular intervals. This strategy reduces the impact of short-term price fluctuations and can provide more stable long-term results.

● Have an Exit Plan: Define your investment goals in advance. Know under what conditions you plan to take profits or exit the market entirely. Having a clear strategy in place helps avoid impulsive decisions during periods of extreme volatility.

Smarter Trading with the Bitget Altcoin Season Index

The Bitget Altcoin Season Index is a powerful, user-friendly tool designed to help traders and investors assess whether the market is currently favoring altcoins or Bitcoin. By evaluating the 90-day performance of the top 100 cryptocurrencies compared to Bitcoin, the index categorizes the market into three phases: Bitcoin Season, Altcoin Season, or a neutral transition. This insight is displayed in a clean, color-coded format, making it accessible even to those new to crypto investing.

Designed with both simplicity and functionality in mind, the Bitget Altcoin Season Index serves as a strategic tool for traders and investors. It supports better market timing, helps with portfolio diversification, and enhances risk management by highlighting shifts in capital flow between Bitcoin and altcoins. By converting complex market data into a user-friendly format, Bitget continues to empower its users with practical insights for smarter decision-making in the ever-changing crypto landscape.

Discover whether it’s Bitcoin or altcoins in control - check the Bitget Altcoin Season Index.

Conclusion

Altcoin seasons can be some of the most exciting, and profitable in the crypto market, but they also come with added volatility and risk. That’s why understanding tools like the Altcoin Season Index is so important. These indexes give you a clearer view of when the market may be shifting from Bitcoin dominance to altcoin momentum.

For crypto beginners, this insight can make all the difference. Combined with smart strategies like diversification, timing, and risk control, the Altcoin Season Index can help turn guesswork into informed action. In a market that never sleeps, having a reliable indicator at your fingertips is one step closer to trading with confidence.

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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.