Altcoin Season: Should You Buy Altcoins Before Bull Run

Altcoin Season

Every few years, a powerful wave of excitement sweeps through the crypto market. Bitcoin usually leads the charge, but after its initial surge, something interesting happens — altcoins (alternative cryptocurrencies) start exploding in value. This event is what crypto traders call Altcoin Season.

In 2025, many crypto analysts are already seeing early signs of another altcoin season. With Bitcoin hitting new highs and the market heating up, the big question is: Should you buy altcoins before the bull run peaks? This guide will help you decide.

What Is Altcoin Season?

Altcoin Season is a period when altcoins significantly outperform Bitcoin in terms of price gains. While Bitcoin remains the market leader, during this phase, money starts flowing into smaller coins with higher growth potential.

🧠 Bitcoin vs. Altcoin Bull Runs:

  • Bitcoin Bull Run: BTC leads the market, dominates volume and investor interest.
  • Altcoin Season: BTC cools down or moves sideways, and altcoins surge.

A key tool to track this is the Bitcoin Dominance Index (BTC.D) — which measures Bitcoin’s market share compared to all other cryptos. When BTC dominance drops, it signals that investors are rotating into altcoins.

Historical Altcoin Seasons:

  • 2017: Ethereum, Ripple, and Litecoin saw massive gains after BTC.
  • 2021: Memecoins like Dogecoin and altcoins like Solana, Cardano, and Avalanche surged.

How to Know If Altcoin Season Is Starting

Declining Bitcoin Dominance

When Bitcoin Dominance (BTC.D) starts falling below 50%, it often triggers an altcoin rally. A sweet spot is typically between 40% and 45%.

  • You can track this on platforms like TradingView or CoinMarketCap.
  • Declining BTC.D = funds flowing into altcoins.

Increased Volume in Alt Pairs

Altcoins paired with USDT or ETH start gaining volume. Coins like Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) start leading the market.

  • Smaller cap coins begin to break out.
  • Total altcoin market cap increases rapidly.

Social & Sentiment Signals

  • Google Trends spikes in keywords like “best altcoins to buy.”
  • Crypto Twitter (X) and Reddit (r/cryptocurrency) buzz with altcoin picks.

📊 Chart: Bitcoin Dominance vs. Altcoin Market Cap Growth (2017–2025)
BTC.D vs Alt Market Cap Chart

Why Altcoins May Outperform Bitcoin in a Bull Run

There are a number of reasons why altcoins might do better than Bitcoin in a hot market. Many altcoins, unlike Bitcoin, have smaller market capitalizations. This means that when investors become interested in them, they can experience larger price increases. They often add new technologies, features, or uses that get people interested, like NFTs, DeFi protocols, or scalable smart contract platforms.

This gives them more room for growth than Bitcoin has as a source of value. Also, speculative traders often move their gains from Bitcoin into altcoins looking for better returns, which causes short-term price increases. But with this higher potential, there is also more danger, since altcoins usually have more volatility and are more affected by market sentiment than Bitcoin.

Risks of Buying Altcoins Before a Bull Run

There are a lot of risks when you buy altcoins before a bull market. First, altcoins are often very fickle, which means that prices can change a lot in a short amount of time. This can lead to losses if the expected increase doesn’t happen. Second, it’s harder to sell a lot of altcoins without changing the market price because many of them have lower liquidity than Bitcoin. Third, some projects may not have strong fundamentals or open teams, which makes scams, rug pulls, and failed ventures more likely. Regulatory uncertainty is also a risk because new rules could make it harder to trade or accept. Finally, it’s hard to time the market. If you get in too early or too late, you could miss out on gains or see big losses.

Top Altcoin Categories to Watch in 2025

Layer 1 & Layer 2 Blockchains

  • Ethereum (ETH)
  • Solana (SOL)
  • Avalanche (AVAX)
  • Arbitrum (ARB)

DeFi & Real World Assets

  • Aave (AAVE)
  • Chainlink (LINK)
  • MakerDAO (MKR)
  • Pendle (PENDLE)

Meme & Community Tokens

  • Dogecoin (DOGE)
  • Shiba Inu (SHIB)
  • PEPE, and newer viral tokens

AI, Gaming & Metaverse

  • Render (RNDR)
  • Gala (GALA)
  • Illuvium (ILV)
  • Worldcoin (WLD)

How to Build an Altcoin Portfolio

✅ Diversify by Sector and Size

Don’t put all your money in one token. Instead:

  • 40% Large-cap (ETH, SOL, LINK)
  • 30% Mid-cap (ARB, PENDLE, RNDR)
  • 30% Small-cap (newer projects with potential)

Use Secure Wallets

For long-term holdings, use cold wallets like Ledger or Trezor.

💡 Want help getting started? Read our Beginner’s Guide to Altcoin Trading

Timing Your Entry: Before or During the Bull Run?

When to enter a bull run relies on how much risk you are willing to take and your overall plan. If you enter before the bull run, you could make more money if the market goes up, but there is a chance of rapid changes and short-term corrections. If you wait to get in during the bull run, you might not lose as much because the trend is already in place. However, it usually means you have to pay more to get in and won’t be able to make as much profit. A lot of seasoned traders balance this by scaling in, which means they buy in multiple stages. This allows them to control risk while still participating in upward momentum. Keeping an eye on market indicators, mood, and Bitcoin dominance can help you find the best places to enter.

Pro Tips to Survive Altcoin Season

To get through altcoin season, begin by studying each project in depth and concentrating on the basics, the trustworthiness of the team, and how useful the project is in the real world instead of on excitement. Don’t put all your money into one high-volatility token. Instead, spread your investments across different tokens to lower your risk. When the market changes quickly, you can set clear ways to get in and out, including stop-losses and profit-taking places.

Stay informed on market trends and sentiment, monitoring Bitcoin dominance, news, and social media chatter, since altcoin performance often correlates with broader market movements. Finally, don’t make emotional choices when the market is very unstable, and always be ready for fast price changes, which are common when altcoins make up a big part of your portfolio.

Why did altcoins not perform well?

Altcoins don’t always shine — and in some market cycles, they underperform or even crash hard. Altcoins usually shine only when BTC.D drops — signaling that market participants are taking more risks. Altcoin rallies are often driven by retail FOMO, especially in meme coins and low-cap gems.

Altcoins are high-reward but also high-risk. When the market favors stability or Bitcoin dominance is rising, altcoins can underperform badly — even during a broader crypto uptrend.

What sparked previous altcoin seasons

Altcoin seasons are not random. Each major altcoin surge in the past was triggered by a mix of market conditions, investor psychology, and key developments in the crypto space.

Altcoin season tends to follow when Bitcoin has already rallied significantly and starts trading sideways. Investors rotate profits into altcoins seeking higher returns.

When is the next alt season?

There’s no exact date for when altcoin season starts. However, based on past crypto cycles and current market indicators in 2025, we can estimate that the next altcoin season may begin in Q4 2025 or early 2026. Historically, altcoin seasons follow 6–12 months after Bitcoin halvings, as BTC cools and capital rotates into altcoins.

As of mid-2025, BTC dominance is above 50%, but if it starts to fall below 48%, it typically marks the early stage of altcoin season. Altcoin season is not guaranteed and timing it perfectly is hard. But if history repeats, late 2025 to early 2026 could be the next big altcoin wave.

Why Should Crypto Investors Care About Altcoins Movement?

If you invest in crypto, you should pay attention to altcoins. Movements in these coins often show how the market is doing and how people feel about investing. When there is a lot of altcoin growth, also called “altcoin seasons,” buyers may get more money back than if they only held Bitcoin, because smaller coins can grow very quickly.

In the world of cryptocurrency, how well altcoins do can be a sign of changes in the amount of money people are willing to risk, the flow of money, and the acceptance of new technologies. When investors keep an eye on altcoins, they can find new chances, diversify their portfolios, and make smarter choices about moving their money between Bitcoin, stablecoins, and promising altcoins. By studying bitcoin trends, you can get a better idea of the market’s ups and downs.

How to Track the Altcoin Season Index Effectively

To keep a close eye on the Altcoin Season Index, you should first use trustworthy tools and websites that track how well altcoins do in comparison to Bitcoin. The Altcoin Season Index (altcoinseason.com) and crypto data sites are two examples. Keep track of the percentage of top-performing altcoins that do better than Bitcoin over a certain amount of time, usually 90 days.

This will show you if the market supports altcoins. Put this together with market sentiment analysis, trade volume trends, and Bitcoin dominance charts. A dropping Bitcoin dominance usually means that an altcoin season is starting. If you regularly update your data, look for patterns with news or events, and check multiple sources, you can get a clearer picture. This will help you make informed choices about entry, exit, and portfolio allocation when altcoins are heavy.

FAQs

Q1: What is Altcoin Season and how long does it last?
It’s when altcoins outperform Bitcoin. It can last weeks to several months depending on market momentum.

Q2: How do I know if altcoin season has started?
Watch for declining Bitcoin dominance, rising altcoin volumes, and growing social media buzz.

Q3: Which altcoins are best to buy before a bull market?
Ethereum, Solana, and top DeFi or AI coins are often safer bets. Small caps can offer higher risk/reward.

Q4: Should I sell my Bitcoin for altcoins during altcoin season?
Not necessarily. Diversify instead of going all in. BTC is still a strong long-term hold.

Q5: Is it too late to invest in altcoins in 2025?
If the bull run is still early or mid-phase, it’s not too late. But always manage risk and avoid FOMO buys.

Q6: How do I predict an altcoin season?
While you can’t predict it with 100% accuracy, there are clear signals that suggest altcoin season is coming. Use a combination of technical data (BTC.D, volume, market cap) and sentiment signals (Google Trends, social media) to build a strong case. The more signals that align, the stronger the likelihood altcoin season is starting.

Q7: How long does the altcoin season usually last?
Altcoin season is intense but short-lived — usually 4–12 weeks. To make the most of it, enter early, take profits gradually, and don’t chase the tail end of the cycle.

⚠️ Disclaimer

This article is for educational purposes only. It is not financial advice. Always do your own research and consult a licensed advisor before making investment decisions.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top