News • 3 min read
By Aron Abraham
Bitcoin is the most popular cryptocurrency. But every now and then, altcoins claim the spotlight during the so-called “Altcoin season”.
It is very simple: every crypto, coin or token other than Bitcoin. You’ve probably already heard of the top ones: Ethereum, XRP, Tether, Polkadot or Cardano. Of course, our very own BEST (Bitpanda Ecosystem Token) and Pantos (PAN) are also classified as altcoins!
Generally speaking, during Altcoin season, Bitcoin tends to lose some of its dominance in the crypto market to Altcoins. You can see this displayed in a chart format here. In other words, the market cap of Bitcoin decreases compared to the overall market capitalisation of other crypto assets on the market. The market cap metric is used to illustrate the “size” of a crypto asset relatively often, and is mostly set by multiplying the price of an asset with the circulating supply.
There are certain calculations out there that attempt to determine the beginning and the end of Altcoin season through percentages and numbers. The reason why none will be discussed in this article is because they lack any objective basis and can therefore be very misleading. Just remember, whenever altcoins are the talk of the town, it’s an indicator Altcoin season is here.
It is virtually impossible to tell exactly what causes Altcoin season. However, the generally-accepted idea is that after a Bitcoin bullrun (or at least the signs of it), investors tend to sell some of their BTC to realise their gains.
Then, they seem to be buying altcoins with some of these profits, which could naturally lead the prices of various altcoins to go up.
Other driving factors behind this particular Altcoin season might include the Dogecoin hype that happened 2 months ago, the NFT craze that is still ongoing and the recent news surrounding the XRP-SEC lawsuit. As you can see, it’s hard to connect it to singular events.
On a global scale, in terms of coins with the biggest market cap, Ethereum (ETH), Polkadot (DOT) and Cardano (ADA) have been trending recently. When it comes to coins with smaller market caps, Bitpanda Ecosystem Token (BEST) and Pantos (PAN) both have experienced changing movements recently, as well as Chiliz (CHZ), Komodo (KMD) and 0x (ZRX).
If we could predict the price movements, we would be very happy to tell you what will happen. Unfortunately, we can’t. If you believe you can, then you already have the answer to this question.
On the other hand, if you are like us and can’t predict the future, but don’t want to miss out on the next big Altcoin gains either, you should check out the world’s first real crypto index, offered by Bitpanda, where you can choose from indices representing the top 5, top 10 and top 25 cryptocurrencies.
Are you ready to be part of Altcoin season? Start trading altcoins on Bitpanda today!
This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets. Please note that an investment in digital assets carries risks in addition to the opportunities described above.
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Bitpanda Tech • 3 min read
Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
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