While everyone's eye is on the Bitcoin chart lets shift our focus a little to the altcoins.
It is no longer news that Bitcoin has experienced a rapid increase since President-elect Donald Trump was declared the winner of the 2024 US election. However, as the price of Bitcoin surges, most altcoins with a lower marketcap are left behind, seeing little or no gain and this left us with the following 3 questions.
When altcoin season?
Why are most altcoins making little gains compared to Bitcoin's price surge?
Are there any altcoins that have the potential to steal the spotlight from Bitcoin?
All these and more will be answered below.
When altcoin season: Altcoin season, or 'Alt season' for short, occurs when cryptocurrencies other than Bitcoin, such as Ethereum— significantly outperform Bitcoin over a sustained period. As many of you in the crypto space know, every bull season starts with a Bitcoin price surge. This is why most traders pay more attention to the Bitcoin chart, and if so, could that mean we’re close to alt season?
Take a look at this screenshot taken from coinmarketcap app
This is one tool I found useful. It tracks the performance of altcoins compared to Bitcoin by assessing whether altcoins are surpassing Bitcoin. This allows traders to spot potential altcoin seasons when the index indicates altcoins are outperforming Bitcoin.
Why are most altcoins making little gains compared to Bitcoin's price surge: Well, to answer this briefly, I can simply say that it is not yet alt season (as you can see from the alt season index). However Bitcoin dominance plays a big role here. When Bitcoin is highly dominat in the market, investors often focus on Bitcoin, leaving altcoins undervalued.
Are there any altcoins that have the potential to steal the spotlight from Bitcoin: Well, if Bitcoin is the king of the crypto jungle, then altcoins are like the ambitious little animals trying to steal its crown, some might get close, but they’re still figuring out how to wear it. The fact is that we've seen coins like $ETH, $SOL, $BNB, $DOGE, $PEPE, $INJ, and $OM surge in price like never before, profiting their investors even more than Bitcoin, to be honest. Though their market caps are still very undervalued.
Take a look at this screenshot taken from coin marketcap app as of the time of writing this:
