In recent days, we have witnessed a remarkable rally in Bitcoin and the cryptocurrency market. This phenomenon, also called altseason, is attributed to a number of reasons, most notably the proximity of halving, the approval of Bitcoin ETFs by the SEC and the approval of ETNs in the UK.

What is an ETN?

An ETN (exchange traded note) is a fully collateralized exchange traded note that invests in bitcoin. Backed 100% by bitcoin (BTC) and stored in a regulated crypto-custodian. Currently being pilot tested in the UK for professional investors. This initiative contributes to the altseason momentum, which as we have mentioned on several occasions the altseason is primarily driven by the Bitcoin Bull run.
In addition, Bitcoin has recently surpassed the $69,000 barrier, set in November 2021.

Bitcoin Season vs. Altseason

In the world of cryptocurrencies, we can identify two “seasons”: the Bitcoin season and the altseason.
During the Bitcoin season, BTC experiences a significant increase in value and market dominance, outperforming other cryptocurrencies, or altcoins. It should be clarified that we speak of altcoins when referring to all non-BTC cryptocurrencies.

On the other hand, the altseason is characterized by a period in which altcoins experience a notable increase in value compared to Bitcoin, i.e. although Bitcoin will be on the rise, altcoins will experience a much higher percentage increase. This period, which usually extends for at least 5 months, offers unique opportunities for those looking to enter the market.

How to Identify the Altseason

• Altcoins Performance: Watch altcoins outperform Bitcoin in terms of price increase and trading volume.
• Market Dominance: During the altseason, Bitcoin’s dominance tends to decrease as altcoins gain market share.
• Trading Volume: An increase in the trading volume of altcoins can be a sign of renewed interest in these coins and an indicator of altseason.
• Market Sentiment: Pay attention to the enthusiasm and attention towards altcoins in online cryptocurrency communities. An increase in positive sentiment may signal the arrival of altseason.

There are multiple ways to explore market dominance to determine whether we are in altseason or Bitcoin season. However, the easiest and most practical is to divide the percentage of Bitcoin capitalization in relation to the total market capitalization. If this percentage is greater than 50%, we are in Bitcoin season; if it is less than 50%, the altseason has begun.

In this article, we have explored the reasons behind the recent surge in Bitcoin and cryptocurrencies, as well as the keys to identifying the season. Take advantage of this information to make informed decisions in your investments.