There are numerous trends in the world of cryptocurrency. While it is evident nearly all of the major currencies rely on Bitcoin’s value first and foremost, there is also a period when that unwritten rule is thrown out of the window. Traders often refer to such a trend as “Altcoin Season”, even though most people will agree such a thing does not necessarily exist. There is a very fine line between what is perceived as “Altcoin Season” and “pump-and-dumps”.
The Purpose of Altcoin Season is Making Money
It is safe to say no altcoin will gain value when Bitcoin is either bearish or extremely bullish. Although that situation can change over time, a bearish Bitcoin market will usually drag all alternative markets down with it. When the world’s leading cryptocurrency gains 5% in value or more, it takes a while for alternative markets to catch up. This is primarily because those currencies are losing value against Bitcoin directly.
When this situation suddenly turns around, a conundrum known as “Altcoin Season” is…