Bitcoin has performed well, and traditionally this rise is followed by a rise in altcoins. If there comes a period where Bitcoin’s growth is overtaken by that of altcoins, this could mean an alternate season.
The pace of the crypto market
Everything moves in cycles, and even the relatively young crypto market cannot escape this. This cycle could look like this:
- The crypto market is dead and not much is happening apart from some random altcoins that pop up every now and then
- Bitcoin starts to rise
- Investors want to make a profit, but think it’s too late for Bitcoin, so they buy altcoins
- Bitcoin is on its way to a peak and with it the altcoins are rising
- Bitcoin has had its day, altcoins will be around for a while
Unfortunately, De Dikke Van Dale has no official definition of a low season, so everyone can do what they want. So we do that too. One way to quantify bull season is by looking at Bitcoin’s dominance in the crypto market. Is it decreasing? Then altcoins will become more dominant.
The graph above shows the entire crypto market in 2016. Focus on the green line, this is Bitcoin’s dominance. When this line falls, altcoins grow faster than Bitcoin. In the history of the crypto market, there have been two very significant drops towards the green line.
Jewels among the altcoins
The red circles show that in both cases Bitcoin reached its all-time high (at the time) and altcoins survived for a while. However, the peak season started a few months before Bitcoin’s price peaked in 2017 and 2021, which is shown by the orange line at the bottom.
Looking at the current situation, we see no decline in Bitcoin’s dominance. On the contrary: the green line is constantly growing. So it is not a low season and the trick is to find these gems among the altcoins. Exceptions to the rule.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
