5 Critical Signs That an Altcoin Season Is Starting Soon

For months, the crypto community has been buzzing with one big question, is the next altcoin season about to begin? In this article we’ll discuss 5 critical signs that an altcoin season is starting. Read more!

The term “altcoin season” refers to a period when alternative cryptocurrencies, known as altcoins, outperform Bitcoin (BTC) in both price and market growth. It’s a moment of excitement and opportunity, where investors look beyond Bitcoin to find the next big mover in the crypto market.

According to data from the Blockchain Center, an official altcoin season begins when at least 75% of the top 100 altcoins outperform Bitcoin over a 90-day period. 

This shift often marks a change in investor sentiment and a rotation of capital from the dominant Bitcoin to smaller, high-potential coins. But how can we detect the signs that an altcoin season is near? Let’s explore the five critical indicators that can help identify the early stages of altseason.

1. Bitcoin Price Cycle as the Starting Signal

Bitcoin remains the most powerful influence in the crypto market. Its price cycle often sets the stage for what comes next. Historically, altcoin seasons tend to follow a major Bitcoin rally. Once Bitcoin hits a new peak and starts consolidating, investors begin seeking higher returns in altcoins.

For instance, when BTC surpassed the psychological barrier of $100,000 in late 2024, many traders took profits from their Bitcoin positions and moved their capital into altcoins such as Ethereum (ETH), Solana (SOL), and Cardano (ADA).

A key technical sign to watch is Bitcoin’s dominance level. When Bitcoin’s market dominance falls below 60%, it often signals that funds are rotating into altcoins, marking the start of broader market diversification. 

This movement reflects a natural shift in investor psychology, from safety in Bitcoin to higher-risk, higher-reward opportunities in altcoins.

Read also: 5 Altcoins with the Best Price Increases to Watch Out For

2. Market Sentiment and FOMO: The Emotional Catalyst

Beyond technical signals, human emotion plays a major role in shaping market trends. Altcoin season is often fueled by FOMO, the fear of missing out. 

When a few altcoins begin posting massive gains, the excitement spreads rapidly across social media platforms like X (Twitter), Reddit, and Telegram.

For example, the soaring prices of Dogecoin (DOGE) and PEPE Coin in mid-2025 triggered waves of online discussions, which encouraged more people to join the trend. 

This created a self-reinforcing loop where demand kept increasing simply because everyone wanted to be part of the action.

Google Trends data supports this observation. In mid-2025, searches for “altcoin” reached their highest level since May 2021, while institutional investors began increasing their exposure to altcoins. 

Ethereum-based ETFs alone attracted over $4 billion in inflows by August 2025, showing that both retail and institutional participants were ready for a new wave of altcoin activity.

3. Global Liquidity and Macroeconomic Conditions

Economic conditions also play a decisive role in determining whether an altcoin season will emerge. 

When central banks such as the Federal Reserve lower interest rates or expand liquidity through quantitative easing, investors tend to move their funds from traditional safe assets into riskier markets like cryptocurrencies.

This trend was clearly visible in 2020 and 2021, when low interest rates fueled one of the biggest crypto bull runs in history. Analysts believe that if the Federal Reserve decides to reduce interest rates again by the end of 2025, it could spark another strong rally, led by altcoins.

Positive developments in global regulations are another encouraging sign. The approval of the spot Ethereum ETF in the United States, for example, has strengthened investor confidence and opened the door for more institutional capital to enter the altcoin market.

Read also: 3 Top Altcoins Picks While Bitcoin Rebounds: Buy Now

4. Technological Innovation and Emerging Narratives

Every altcoin season carries its own unique narrative. In 2017, it was the rise of ICOs. In 2021, decentralized finance (DeFi) and non-fungible tokens (NFTs) dominated the conversation. 

The narrative in 2025, however, centers on artificial intelligence (AI) integration and the tokenization of real-world assets (RWA).

Projects like Ethereum, Solana, and Avalanche are focusing on tokenizing physical assets such as real estate and company shares, bridging the gap between blockchain and the traditional economy. 

Meanwhile, AI-powered DeFi platforms are gaining attention for their practical use cases and scalability.

This surge of innovation attracts both developers and investors, creating a strong foundation for altcoins to grow in value. When new technologies align with positive market sentiment, the stage is set for a full-fledged altcoin season.

Read also: 3 Altcoins You Should Know This Month: SOL, XRP, and SUI

5. Capital Flows from Institutional and Retail Investors

In previous years, retail traders largely drove altcoin rallies. But in 2025, institutional investors are leading the charge. Data shows that Bitcoin’s dominance has dropped below 59%, indicating significant capital movement into altcoins.

Ethereum ETFs have seen inflows of up to $4 billion, while new ETF applications for Solana and Ripple (XRP) are awaiting regulatory approval. Analysts expect these products to attract an additional $8 billion once approved.

Altcoin trading volume has also surged. On Binance Futures, daily trading of altcoin pairs reached over $100 billion in July 2025, the highest level in more than a year. 

This increase in both volume and participation underscores that altcoins are no longer a niche investment but a growing part of the mainstream crypto ecosystem.

Read also: Best Altcoins for Altseason 2025: SOL, XRP, and Memes to Watch on Bitrue

Conclusion

With the Altcoin Season Index sitting at 78 and Bitcoin’s dominance hovering below 60%, many analysts suggest that altseason may have already begun. However, investors should remain cautious. The opportunity for high returns also comes with significant risks.

Altcoins are known for their volatility and can lose much of their value after reaching their peak. The best approach is to combine market analysis with risk management, diversify holdings, study key altseason indicators, and monitor global liquidity conditions. 

Recognizing how to detect altcoin season early can help investors position themselves for potential gains while minimizing downside risks.

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FAQ

What is Altseason?

Altseason is a period in the crypto market when altcoins (all cryptocurrencies other than Bitcoin) collectively outperform Bitcoin and experience significant price increases. This phenomenon usually occurs after Bitcoin has had a major price rally and begins to stabilize, prompting investors to shift capital into altcoins for potentially higher returns.

How long does Altseason last?

The duration of an Altseason can vary. Analysts note that while the average duration is about 17 days, it can last for more than 100 days if the market momentum remains strong. The market is confirmed to be in Altseason when 75% of altcoins are outperforming Bitcoin.

What are some examples of altcoins?

There are thousands of altcoins, but some of the most well-known and popular ones include Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Cardano (ADA), Solana (SOL), and Polkadot (DOT). Altcoins are categorized by their function, such as stablecoins (e.g., Tether), meme coins (e.g., Dogecoin), utility tokens, and governance tokens.

How long does the crypto alt season last?

The Altcoin Season Index measures the relative performance of altcoins against Bitcoin over a specific period, typically 30 or 90 days. A high index score indicates a season where the majority of altcoins are outperforming Bitcoin.

Are meme coins considered altcoins?

Yes, meme coins are included in the altcoin category. "Altcoin" is the general term for all cryptocurrencies besides Bitcoin, and meme coins are simply a specific type of altcoin that gain popularity due to viral internet memes or trends.

Is Solana considered an altcoin?

Yes, Solana (SOL) is an altcoin. The term "altcoin" refers to any cryptocurrency other than Bitcoin, and Solana is one of the major cryptocurrencies that falls into this category.