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January 25, 2025

Altcoin Season Incoming: Are You Ready for the Crypto Trading Market Shift?

Altcoin Season Incoming: Are You Ready for the Crypto Trading Market Shift?

Okay, folks, we might be on the cusp of something big in the cryptocurrency market. Bitcoin’s dominance is just dipping a bit, which could mean that we are heading straight into altcoin season. Let’s dissect what that means and what to watch for.

What Is Altcoin Season?

For those not in the know, “altcoin season” is basically when these non-Bitcoin cryptocurrencies start seeing insane growth. Typically, the altcoin season kicks off when Bitcoin’s market dominance takes a hit, pushing investors toward the altcoins. But how do we know when to expect it?

Bitcoin’s Role in the Crypto Trading Markets

We can’t talk about altcoin growth without mentioning Bitcoin. The original crypto still has a lot of muscle in the market. Its price movements influence pretty much everything. Historically, these altcoin seasons have followed Bitcoin’s strong performance, but it’s not a simple cause-and-effect.

Factors Needed for Altcoin Season to Start

According to some of the smart folks at Glassnode, here are the two things we should be paying attention to:

  1. Bitcoin’s Market Dominance Must Decline: When Bitcoin’s share in the market shrinks, it often leads to people looking for alts. If dominance decreases, that might be the first hint that other cryptos might start to pop.

  2. Bitcoin Stays Over $100,000: Bitcoin’s price should stay firmly above the $100,000 mark. A sustained high price of Bitcoin is usually good news for the market overall.

For now, Bitcoin is doing its thing. As I write this, it’s bouncing up and down around $104,419.

What’s Stirring in Global Markets?

As always, global and market dynamics have an impact. And honestly, it’s a mixed bag. Regulatory changes, interest rates, market sentiment, and more can influence how well alts do.

Regulatory Changes

New regulations can make or break a season. If major economies decide to crack down on cryptos, you can bet it will add some uncertainty. On the other hand, a stance in support of cryptos could make things easier.

Interest Rates

Who doesn’t think about those beautiful low interest rates?! They can also have a role in the timing of altseason, increasing cash flow into alternative assets like cryptos.

Market Conditions

Broader economic factors also matter. If things get shaky and traditional markets are unstable, crypto-related assets might look extra attractive.

Institutional and Retail Investors

More institutional and retail investment is always a good thing. Increased liquidity usually leads to interest and money flowing into altcoins, which could kickstart the season.

Political Events

Finally, political events can change the game. A pro-crypto administration could help kick off an altseason.

Is This the Best Way to Start Trading Crypto?

What’s a person to do if they’re new to this whole cryptocurrency scene? Excellent question. Here are some ways beginners can make their way through the crypto trading market.

Diversifying the Portfolio

Diversifying is always a good idea in crypto. A little Bitcoin, a little altcoin, a little this, a little that.

Research and Analysis

Do your homework. Don’t just jump in because everyone else is.

Trading Signals

Signals for crypto trading can help point you in the right direction. Look for the best trading signals for crypto if you’re serious.

Risk Management

You know what they say—don’t risk more than you can afford to lose.

Stay Informed

Keep your ear to the ground, follow economic indicators, and stay in the know.

AI’s Influence in Cryptocurrency Short Term Trading

And let’s not forget about artificial intelligence. It’s already in the game and changing everything. The frenzy over AI agents has resulted in some amazing returns for altcoins that have even a casual connection with AI in their protocols.

AI is Everywhere

AI-focused tokens have been pushing higher on the backs of the broader AI craze in finance. Tokens like Ocean Protocol (OCEAN), SingularityNET (AGIX), and Fetch.ai (FET) have averaged a 24% increase.

More Influx into the Market

AI is flooding our crypto market for beginners with new ideas.

Supercharging the Trading Bot Performance

If your trading bot performance isn’t where it needs to be, maybe AI is a part of that solution.

Summary: Be Ready for Altcoin Season

So here’s the bottom line: Two things need to happen for altcoin season to really kick off: Bitcoin’s market dominance needs to drop, and its price needs to remain over $100,000. Plenty to watch for if you’re looking to make moves.

What do you think? Are you ready for the next big thing?

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Egor Romanov
About Author

Egor Romanov is an experienced crypto analyst, professional trader, and author of trading strategies and the Cryptorobotics blog, where he shares his knowledge about cryptocurrencies and financial markets.

Alina Tukaeva
About Proofreader

Alina Tukaeva is a leading expert in the field of cryptocurrencies and FinTech, with extensive experience in business development and project management. Alina is created a training course for beginners in cryptocurrency.

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