Yet another boom seems to be upon us and news headlines are being dominated by Bitcoin. Ever since a steep crash in May, $BTC has managed to not only recover its losses but rise to new heights. This has come despite repressive measures by several state governments, providing real evidence of Bitcoin’s staying power. Indeed, Bitcoin has doubled in value since China proclaimed a ban on it in June. A lot of worries, that cryptocurrencies might be curtailed by government regulations, seem to have evaporated over the last couple of weeks.
Bitcoin’s recovery has prompted a lot of talk of a potential altcoin season. So what is an altcoin season and should you bet your money on altcoins yet?
As is the case with most things in crypto, an exact definition is not the easiest thing. But most experts agree that it is altcoin season when at least 75 percent of the top 5o altcoins perform better than Bitcoin over a 90-day period.
How is that even possible, you ask. Isn’t Bitcoin doing so well that it is performing better than most other assets, let alone other cryptocurrencies? Well, yes, but it is certainly not the best-performing cryptocurrency out there. In fact, over the last ninety days, taking just the top 50 cryptocurrencies by market-cap, Bitcoin is only the 21st best-performing cryptocurrency. An altcoin season might not be far off.
There is another reason why now might be the best time to invest in altcoins. History suggests that a good Bitcoin bull run is almost always followed by altcoin season. As the price of Bitcoin consolidates or stagnates after a period of gains, holders often tend to transfer their gains to altcoins to make even more of a profit, driving the price of these altcoins up.
So now might just be the time to invest in your favourite altcoins. Just make sure you pick and choose wisely.