What is Altseason? – Learn more about the altcoin season and the prospects for the next one
What is Altseason? This term gained popularity between 2017 and
2018, after the Bitcoin bubble burst. The fall in the BTC price, which in the
previous year had reached a record high of $19,000 USD per unit, pushed
investors around the world to look for investment alternatives in other
As a result, BTC’s main competitors gained an unprecedented position in
the crypto market. The impact of the burst was such that in February 2017
Bitcoin alone represented around 95% of the market, but in January 2018 this
figure reached a minimum of 38%!
In this context, some altcoins grew more than 400% in a short span of time. Some of today’s major cryptos, such as Ethereum, Dash, Monero, and XRP, consolidated in the market during this time. This period was also known as the altcoin spring.
In this article, the Cripto InterCambio blog will further explain what altseason is and what the prospects look like for the next one.
is Altseason: History
The Rise of Bitcoin
2017 was a remarkable
year for the crypto world. During that year,
Bitcoin’s price rose about 19 times. At the beginning of January, the price
of a coin was around $1,000 USD. Eleven months later, and after a full year of
upward trends, BTC was valued at almost $19,000 USD, reaching its highest
Due to this rapid
growth, Bitcoin ceased to be a topic only for fans and gained greater
acceptance among a wider audience. It was the snowball effect. The more people
invested, the more the BTC price grew. Large and small investors had their
first contact with the crypto world at that time.
The reasons for the rise and fall of Bitcoin in 2017 are multifactorial
and will be a topic for expert discussion for years. Growth is strongly
correlated with halving, when fewer Bitcoins are generated per validated block.
The reason for the bubble burst is still not clear, but some suggest there was market manipulation by large investors.
What are Altcoins?
Many people heard about cryptocurrencies for the first time in 2017.
However, it is worth remembering that Bitcoin was created in 2009.
Even since the time BTC was completing its first transactions until its
rise in 2017, a series of cryptocurrency projects have emerged to compete with
Bitcoin: the so-called altcoins.
In general, such cryptocurrencies attempt to improve aspects of the
original Bitcoin or bring new blockchain technology concepts. Faster
transactions, greater anonymity, smart contracts, lower energy expenditure…
there is a bit of everything.
The fact is that most of them were virtually unknown until the Bitcoin bubble in 2017. BTC had about 90% market dominance, while hundreds of other cryptocurrencies had the remaining 10%.
The growth of Bitcoin and the massive entry of capital into the cryptocurrency market created interest in other cryptocurrencies. Hundreds of thousands of investors realized that one of those extremely cheap currenciescould be the new Bitcoin, whose price could grow rapidly in the short and medium-term.
The demand for altcoins grew enormously when the Bitcoin bubble burst,
then the altseason began. Almost all
altcoins had significant increases in January 2018. Here are some examples:
Price in January 2017: $8.30 USD
Price in January 2018: $1,360 USD
Price in January 2017: $10 USD
Price in January 2018: $1,439 USD
Price in January 2017: $13.69 USD
Price in January 2018: $472 USD
After that peak, altcoins prices never returned
to such highs. Most of them saw their price fall in the following years, while
Bitcoin again gained strength against altcoins. Currently, Bitcoin has about
68% of the market, and its market capitalization value is almost 9 times higher
than the second-largest cryptocurrency: Ethereum.
is Altseason: When will the next Altseason be?
It is difficult to say
precisely when the next altseason will be. There are multiple factors that lead
up to it in the crypto world. But some factors can serve as indicators, and
2020 looks promising. Let’s take a look:
The cryptocurrency market is quite volatile, and goes through long low
periods, followed by shorter high periods. It is common for cryptocurrencies to
be valued as a whole, and not just individually – which means more or less
confidence at the moment.
2020 has been surprising. In January alone, Bitcoin appreciated 30%.
Other currencies have grown even more, such as Dash and Cardano.
The most relevant factor pointed out by
cryptocurrency analysts is market dominance. This means that investors are
willing to invest more in other cryptocurrencies when Bitcoin loses its ground.
Here, the FOMO (Fear of Missing Out) effect becomes
relevant. Just like the snowball metaphor: as the little ball begins to roll
everyone wants to join in (getting the most benefit from it) before it hits the
Leading up to January, Bitcoin dominance
remained above 65%. This means that investors are not willing to withdraw from
BTC and take general risks, at least not yet.
But 2020 has just begun! Hopefully, there will
be changes in the next months! Maybe next altcoin
season is knocking on the door.
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