Alt season in crypto is one of the most talked-about phases of the market cycle, especially when you’re new and watching smaller coins suddenly move faster than Bitcoin. One week, everything feels quiet. The next, your social feed is full of tokens you’ve never heard of, prices are jumping double digits in a day, and people are calling it “altcoin season” like it’s an annual holiday. In reality, alt season in crypto is not a fixed date or a guaranteed pattern. It’s a market condition—one where altcoins outperform Bitcoin across a broad slice of the market and capital rotates into higher-risk, higher-volatility assets.
In 2025, the idea of altcoin season is more important than ever because crypto has matured. We now have more data, more indicators, and more institutional influence shaping the cycle. At the same time, the market still runs on psychology: momentum, narratives, and rotations. That means beginners need a clear, practical explanation of what alt season in crypto is, what actually drives an altcoin season, and how to recognize it without falling for hype or getting stuck holding bags after the party ends.
A useful way to define altcoin season is through performance-based indexes that compare how a basket of altcoins performs relative to Bitcoin over a fixed time window. For example, BlockchainCenter’s Altcoin Season Index defines “Altcoin Season” as a period when 75% of the Top 50 coins outperform Bitcoin over the last 90 days (excluding stablecoins and certain asset-backed tokens). CoinMarketCap also maintains an Altcoin Season Index using a similar 90-day comparison framework to help traders gauge whether the market is in Bitcoin-led or altcoin-led conditions.
This beginner’s guide will walk you through alt season in crypto from the ground up: the definition, the mechanics, the signals, the phases, the risks, and how to think about altcoin season in 2025 with a level head.
Understanding Alt Season in Crypto
Alt season in crypto (also called altcoin season or “altseason”) is a stretch of time when a wide range of altcoins—everything that’s not Bitcoin—collectively outperform Bitcoin. This does not mean every altcoin goes up. It means the market’s “leadership” shifts from Bitcoin to the rest of the crypto ecosystem, and the average altcoin starts delivering stronger returns than BTC over a meaningful period.
A common mistake beginners make is thinking alt season in crypto is just “altcoins pumping.” Real altcoin season is broader than one sector. It tends to show up as market breadth, meaning many coins across different categories rise together—Layer 1s, DeFi, gaming, AI tokens, and sometimes memecoins—with higher volatility and faster rotations.
In simple terms, Bitcoin usually sets the rhythm, and altcoins dance after. Cointelegraph’s explainer frames this pattern clearly: Bitcoin is the bellwether, and altcoin rallies often follow after a Bitcoin-led move sets the stage.
Why Altcoin Season Happens
Alt season in crypto is mainly a rotation event. Capital flows into Bitcoin first because it’s the most liquid, widely recognized asset and often the first place investors park money when they get bullish. Then, as Bitcoin’s move slows or stabilizes, traders start chasing higher returns elsewhere. That’s when capital rotates into altcoins, and altcoin season begins to form.
Bitcoin Dominance and Capital Rotation
One of the most important concepts tied to alt season in crypto is Bitcoin dominance. Bitcoin dominance (often shown as BTC.D) measures Bitcoin’s share of the total crypto market capitalization. When dominance rises, Bitcoin is typically outperforming the rest of the market. When dominance falls, it can signal that altcoins are taking a larger share of market gains.
Major exchanges and research desks frequently discuss this relationship because it’s a simple way to visualize rotation. OKX describes Bitcoin dominance as a key metric for understanding market cycles and altseason dynamics. Coinbase Institutional research has also noted that declining Bitcoin dominance can reflect early-stage rotation into altcoins, even if the market is not yet in “full” altcoin season by stricter index thresholds.
Here’s the beginner-friendly takeaway: when Bitcoin dominance drops while the total market grows, alt season in crypto becomes more likely.
Liquidity, Risk Appetite, and Narrative
Altcoin season also depends on liquidity and risk-on sentiment. When money is plentiful and traders feel confident, they tend to move out on the risk curve—meaning they buy smaller, more volatile assets for bigger potential returns. In a tight liquidity environment, altcoin season is harder to sustain because buyers become selective and capital pulls back into Bitcoin or stablecoins.
Narratives amplify this. In one cycle it’s DeFi; in another it’s NFTs; later it’s Layer 2s or AI tokens. When narratives spread, attention and liquidity follow, and that accelerates alt season in crypto.
How Altcoin Season Is Measured
Because alt season in crypto is a market condition, not a single coin event, measurement matters. Two popular tools help beginners understand when altcoin season is “real” versus when it’s just noise.
The Altcoin Season Index
BlockchainCenter’s index is one of the clearest definitions for beginners: if 75% of the Top 50 coins outperform Bitcoin over a 90-day window, the market is in Altcoin Season. This matters because it avoids cherry-picking. Instead of pointing to one token that did 10x, it asks, “Did most of the market actually beat Bitcoin?”
CoinMarketCap’s Altcoin Season Index similarly uses relative performance over the past 90 days to indicate whether altcoins are broadly outperforming Bitcoin. The specific basket and methodology can differ, but the core idea is the same: alt season in crypto is about broad outperformance, not isolated pumps.
Bitcoin Dominance as a Supporting Signal
Indexes tell you “what happened.” Dominance trends can help you anticipate “what might happen.” When dominance peaks and starts rolling over, it often aligns with the moment traders feel Bitcoin’s easy move is done and they start hunting for higher-beta opportunities.
That said, dominance alone can be misleading. There are times when dominance drops because Bitcoin is falling faster than altcoins, which is not the kind of alt season in crypto beginners want. You want dominance to drop while the overall market remains healthy or rising.
The Typical Phases of Alt Season in Crypto
Beginners often imagine altcoin season as one continuous rally. In reality, alt season in crypto tends to unfold in phases, with rotations inside rotations.
Bitcoin Leads, Altcoins Lag
This is when Bitcoin runs first. Media attention returns. Bitcoin dominance often rises. Altcoins may move a little, but they usually underperform because most new capital goes into BTC.
Ethereum and Large-Cap Altcoins Catch Up
When Bitcoin slows down, large-cap altcoins—especially Ethereum—often start to outperform. This is a key transition because it shows traders are willing to move beyond Bitcoin into slightly riskier majors.
Broad Altcoin Expansion
This is the part most people mean when they say alt season in crypto. Many categories rise together. The Altcoin Season Index typically climbs.
Speculation Peaks
Late altcoin season is usually dominated by extreme speculation. This is when memecoins, low-float tokens, and highly narrative-driven projects can outperform everything else. It feels exciting, but it’s also the most dangerous phase for beginners because reversals can be brutal.
Alt Season in Crypto in 2025
Talking about alt season in crypto in 2025 means acknowledging the market’s new structure. Retail still matters, but institutional flows and macro conditions have a bigger influence than they did years ago. Coinbase’s institutional outlook in 2025 discussed how Bitcoin dominance and altcoin market cap can shift even when the Altcoin Season Index remains below the classic 75 threshold—suggesting “rotation signals” can show up before a full altcoin season is confirmed.
At the same time, public commentary in 2025 has highlighted debate around Bitcoin dominance and whether altcoin season is truly arriving or still premature—showing that even experienced analysts don’t always agree in real time. That’s important for beginners: alt season in crypto is easier to confirm in hindsight than to call perfectly in advance.
So in 2025, the smarter approach isn’t trying to predict the exact start date. It’s learning to recognize the signals and manage risk as conditions change.
The Best Signals Beginners Can Watch for Altcoin Season
Alt season in crypto leaves fingerprints. You don’t need complex charts to notice them, but you do need consistency: one signal alone isn’t enough.
Rising Altcoin Season Index Readings
If an index like BlockchainCenter’s starts moving toward the “Altcoin Season” zone where 75% of top coins beat Bitcoin over 90 days, that’s a strong confirmation signal. CoinMarketCap’s index can also help you track whether the market is shifting toward broad altcoin outperformance.
Falling Bitcoin Dominance During a Healthy Market
Alt season in crypto becomes more credible when Bitcoin dominance trends down while total market capitalization trends up. That suggests rotation into altcoins is happening because investors are seeking additional upside, not because Bitcoin is collapsing.
Strong Performance From Ethereum and Large Caps
In many cycles, Ethereum strength is the bridge between Bitcoin-led rallies and broad altcoin season. When ETH is outperforming and liquidity is rising, the odds of alt season in crypto increase.
Surging On-Chain Activity and Ecosystem Growth
In 2025, on-chain metrics matter more because they help validate whether activity is real. Growth in total value locked (TVL) in DeFi, rising fees on major chains, and increasing stablecoin flows can all support an altcoin season narrative—because they suggest actual usage, not just speculation.
The Biggest Risks During Altcoin Season
Alt season in crypto is thrilling, but it’s also where beginners get hurt most often. That’s because altcoins are more volatile, less liquid, and more narrative-driven than Bitcoin.
Volatility and Liquidity Traps
Many altcoins can move 20% up or down in a day. During altcoin season, that volatility can look like opportunity, but it can also become a liquidity trap where exits are harder than entries, especially in smaller caps.
Hype Cycles and Late Entries
A classic alt season in crypto mistake is buying after a token has already multiplied several times, simply because it’s trending. Late-stage altcoin season often rewards early positioning, not late chasing.
Scams and Low-Quality Tokens
Altcoin season tends to attract low-effort projects, copycats, and outright scams because attention is high. Beginners need to be extra cautious with new tokens that have unclear teams, unclear tokenomics, or suspicious marketing.
A Beginner-Friendly Way to Approach Alt Season in Crypto
The goal is not to “win altcoin season” in one trade. The goal is to participate without letting one bad week wipe out months of progress.
A simple mindset helps: treat alt season in crypto like changing weather. When conditions are calm, you can plan. When storms arrive, you reduce exposure, tighten risk, and avoid decisions based purely on emotion. Altcoin season rewards patience, but it punishes overconfidence.
If you’re a beginner in 2025, the healthiest approach is focusing on understanding crypto market cycles, watching broad indicators like the Altcoin Season Index, and respecting that altcoin season can end faster than it begins.
Conclusion
Alt season in crypto is the period when altcoins broadly outperform Bitcoin, usually driven by capital rotation, improving liquidity, and rising risk appetite. In 2025, beginners have more tools than ever to track altcoin season, including performance-based indicators like the Altcoin Season Index and supporting metrics such as Bitcoin dominance.
The most important lesson is that altcoin season is not a promise—it’s a phase. When you understand the signals and the structure, you can participate more confidently. When you ignore risk and chase hype, alt season in crypto can turn from exciting to expensive. Learn the cycle, watch the data, and let discipline matter more than headlines.
FAQs
Q: What is alt season in crypto in simple terms?
Alt season in crypto is a market phase when many altcoins outperform Bitcoin over a sustained period. It’s usually driven by capital rotating from Bitcoin into higher-risk assets.
Q: How do I know if it’s altcoin season in 2025?
A common benchmark is whether most leading altcoins are beating Bitcoin over a 90-day window. Tools like BlockchainCenter’s Altcoin Season Index use a 75% threshold for the top 50 coins. CoinMarketCap also publishes an index based on 90-day relative performance.
Q: Does altcoin season happen every year?
No. Altcoin season is not guaranteed annually. It depends on broader market conditions, liquidity, and investor risk appetite.
Q: Is alt season in crypto good for beginners?
It can be, but it’s also riskier than Bitcoin-led markets. Altcoins are typically more volatile and can reverse quickly, so beginners should focus on learning signals and managing risk.
Q: What’s the biggest mistake people make during altcoin season?
The most common mistake is chasing coins after they’ve already surged, especially during late-stage altcoin season when volatility is highest and reversals are common.
