Whenever anybody talks about cryptocurrency, the first thing that comes to mind is Bitcoin. There are a lot of people who tend to associate cryptocurrency with Bitcoin only, but there is a lot more than this in the crypto industry. Altcoins are holding quite a high position in this industry and could be seen as an alternative cryptocurrency to Bitcoin.
The price of Altcoins is somehow correlated to the price of Bitcoin as the price of both of these cryptocurrencies increases simultaneously. The period in which the price of Altcoins increases impressively has been named as “Altcoin season” by the crypto traders. It has been seen for a very long time now that whenever the price of Bitcoin declines, traders tend to move towards Altcoins.
As mentioned above, during the time when the price of Altcoins increases, it is called the Altcoin season but at that time the price is not related to the price of Bitcoin. There is not any specific time of the year when this season will come as it can occur during any time of the year. The term was coined during the 2016-2017 bull market when the traders were able to gain huge profits during the time when the price of Altcoins increased to a very great extent.
Usually, the crypto traders shift their funds from Bitcoin to Altcoin and vice versa from time to time, as per the market conditions. During the time when the price of Bitcoin falls, the traders turn toward Altcoin and through this, more money is injected into the market. Even when the price of Bitcoin doesn’t show any great movement for a few weeks or months, then also traders move towards Altcoins. All such scenarios create a proper “Altcoin season”.
Even though a lot of crypto traders claim this season, there are many who completely deny that there is no such thing as that. A lot of people think that this is just a case of a “pump and dump” scheme and not more than this. Several leading crypto traders and enthusiasts have shown their interest in the Altcoin season and give quite bullish predictions regarding the same. This kind of movement in the crypto market is a real thing and should not be confused with a pump and dump scheme. The reason being that this kind of scheme is generally considered as a fraudulent one because here the owners of different altcoins give misleading statements about the coin which leads a lot of people to invest in them.
Since the market crash of March, the performance of Bitcoin declined to a very great extent. However, despite the market crash, it somehow managed to recover back shortly. During the time when Bitcoin was not performing well, there have been some great movements in the Altcoin market. Some huge developments have been seen in the Decentralised Finance (DeFi) sector in 2020. Recently, DeFi has managed to reach around $4 billion of the total value locked in the protocol. This could be seen as a huge success because back in February 2020, the total value locked in the DeFi protocol was around $1 billion.
Not only DeFi, but there are also other Altcoins as well that have seen some huge success during the time when Bitcoin was down. Therefore, this time frame of a few months could be seen as an Altcoin season as people were investing hugely in Altcoins during this period. Bitcoin has now surpassed the $11,000 level and is leading towards $12,000 which is indicating that the bullish movement for Bitcoin is coming forward. This means that the Altcoin season might be coming to an end but not entirely. There might be a pause to it instead of getting ended. This is because most of the altcoins depend on the price of Bitcoin and increases accordingly which means that these might also be increasing their level along with Bitcoin.
Many giants of the crypto industry like CMT Digital, Arca Labs, and many others have shown their faith in DeFi. They have been investing in the development of the DeFi protocol which will prove to be a great move for Altcoins in the future. The predictions keep coming every now and then in the crypto industry and currently, it has been seen that there have been quite bullish Altcoin predictions coming forward. Analysts are believing that as per the current scenario a bullish market might be ahead for Altcoins.
Even though Bitcoin is the largest cryptocurrency, Altcoins have also started gaining huge popularity in the crypto industry. This is indicating that the crypto market is way beyond Bitcoin and people have started adopting Altcoins widely.