In any crypto bull run, two questions dominate every trader’s mind:
Because exposure makes all the difference. The choice between holding more Bitcoin or shifting into altcoins can define your gains—or your missed opportunities. But how do you decide the right time to adjust your portfolio?
One of the main indicators traders rely on to make this decision is the Altcoin Season Index.
The altcoin season index can help you understand whether the market momentum is favoring Bitcoin or altcoins, guiding you on when to reallocate your exposure for maximum advantage.
The Altcoin Season Index is a tool that measures whether altcoins are outperforming Bitcoin in the market. It helps traders understand if the market momentum is favoring altcoins over Bitcoin, signaling the presence of an “altcoin season”: a period when altcoins see stronger gains than Bitcoin.
The concept of the Altcoin Season Index was popularized by crypto analysts and traders who wanted a simple way to quantify the often subjective idea of “altcoin season.”
One of the most well-known versions was created by Twitter user @_43A6, who developed the index by tracking the performance of the top 50 cryptocurrencies (excluding stablecoins) relative to Bitcoin over a 90-day period.
The Altcoin Season Index works by tracking the relative performance of altcoins compared to Bitcoin over a set period, usually 90 days. It measures how many altcoins have gained at least 20% more than Bitcoin during that time.
When the index value is low, it means Bitcoin is outperforming most altcoins, so traders typically stay focused on Bitcoin. When the index rises above a certain threshold—commonly around 75—it signals that altcoins are outperforming Bitcoin, indicating an “altcoin season.”
Traders use this information to adjust their portfolios, deciding when to increase exposure to altcoins for higher potential returns or when to focus more on Bitcoin to reduce risk.
The Altcoin Season Index is a metric designed to measure the current market trend and capital flow between Bitcoin and altcoins.
Because Bitcoin is the most trusted crypto asset, it is usually the first cryptocurrency people buy and is seen as the safest choice in the market.
And so, at the start of a bull run, new and existing investors usually buy Bitcoin first because it’s the most well-known, easy to trade, and relatively stable cryptocurrency.
This inflow pushes Bitcoin’s price up and sets the positive trend for the entire crypto market, signaling growing investor confidence.
When the market moves beyond initial hype and shows consistency, two key behaviors usually happen in the market:
Altcoins offer bigger profit potential because their lower market caps allow for faster and larger price moves compared to Bitcoin.
Altcoins have lower market caps, which means there is less total value locked in their coins compared to Bitcoin. Because of this smaller size, it takes less buying or selling pressure(less money moving in or out)to cause a significant change in their price.
Investors start reallocating their gains from Bitcoin into altcoins, hoping to maximize their profits by riding the altcoin rally.
Both of these behaviours lead to:
Keep a close eye on the Altcoin Season Index value as it changes. When the index is below 50, it generally means Bitcoin is outperforming altcoins, so maintaining a higher Bitcoin exposure is often safer.
When the index rises above 75, it signals strong altcoin momentum—this could be a good time to increase your exposure to select altcoins. Values between 50 and 75 suggest a transitional phase where cautious diversification might be appropriate.
Altcoins tend to be more volatile and can experience sharp price swings. To manage risk:
By combining the Altcoin Season Index with sound risk management, traders can better navigate market cycles and optimize returns.
As of mid-July 2025, the crypto market is sending mixed signals. Let’s break down the key indicators:
Market signals show Bitcoin dominance easing and altcoin momentum building, with Ethereum’s role becoming increasingly important.
Rising altcoin market cap and trading volumes point to a possible altcoin rally ahead. In such a fast-changing market, having the right platform matters. Mudrex offers seamless spot and futures trading with automated strategies and smart risk controls, empowering you to act swiftly and confidently. Stay ready for every market move. Trade smarter with Mudrex.
