What is “Alt Season”?

Just sharing my two cents here, and please feel free to chime in, but I want to talk on “Alt Season” and give some more clarity to newer crypto investors. Everyone in crypto has heard of it, but many only have basic understanding of why it happens, ie “Alt coins go up.”

For concept, I like to use the analogy of a 3-Layer Fountain. Water trickles down from the Top layer, to the middle layer, then fills the bottom, which then gets pumped back to the top. I look at Bitcoin as the Top. As money is being pumped into BTC, people start taking profits and are looking to put those profits into other projects. Those projects are generally the Top 100 Alt coins. This is why we are starting to see ETH, SOL, Doge, etc. Start to pump these past couple of weeks.

The middle layer in my analogy represents these Top 100 Alts. Most of the innovation in crypto comes from this Layer, as these projects generate the funding they need to expand on other ideas. When this layer begins to overflow, then it trickles down to the bottom layer which represents all of the other thousands of projects in crypto. In this stage, you see projects that were concepts turned into reality. It was in this stage during the last Bull Run where we saw the emergence of concepts like Non-Fungible Tokens, which created a bunch of other avenues for crypto to shine (art, gaming, etc.). This is also the stage that brings us all the wonderful Shitcoins like DogeCumElonRocket and SHIBA.

Now Alt Season generally begins when Bitcoin has reached a new All Time High, or after a Halving event. This time around it’s much different. We are starting to see the beginnings of Alt Season even prior to BTC hitting a new ATH. The most interesting part of Alt Season, is that it’s the real fuel behind a Crypto “Bull Run”. As these investors start to see massive gains from these Alt projects, they start pulling profits which end up going back into BTC, causing Bitcoin to run again. This is why we saw Bitcoin pump until the very end of the Bull Run. The profits taken from Alt Season were going back into Bitcoin which made it continue to see new highs.

I also want to bring up that investing into Alt Season can be very risky. Not every project will go up. There is no guarantee that the project you invested in will benefit in the Bull Run, even the biggest projects can end up failing at the end like we saw with FTX, Luna, etc. We see the majority of Scams during Alt Season, as bullish investors are willing to throw money at any project like Safemoon or SQUID. Please make sure you DYOR before YOLOing in on any project, and as always, only invest what you can afford to lose.

Happy Alt Season, Enjoy the Ride!

TLDR by u/crypto_zoologistler: It’s when money flows from BTC to altcoins