- Digital Vault
- Posts
- ALT SEASON ALERT: How to Position Yourself for the Next Altcoin Boom
ALT SEASON ALERT: How to Position Yourself for the Next Altcoin Boom
The difference between catching the next wave of explosive gains or watching from the sidelines
Alright, let’s talk Bitcoin Dominance (BTC.D) and alt season — two of the most critical indicators in this game. If you’re a crypto investor (especially one who’s balancing a full-time gig or running your own business), you need to be dialed into these trends. And I’m not just saying this for hype — understanding BTC dominance could be the difference between catching the next wave of explosive gains or watching from the sidelines while everyone else makes bank.
So, let me break it down in a way that’s easy to digest. Because if you’re serious about maximizing your crypto portfolio, you can’t afford to miss what’s potentially coming next.
What Exactly Is Bitcoin Dominance? Why Should You Care?
Bitcoin dominance is how much of the total crypto market cap is made up of Bitcoin. In simpler terms, it’s a measurement of how much Bitcoin is eating up the entire crypto space compared to other coins. When BTC.D is high, Bitcoin is sucking up all the liquidity — everyone’s focused on Bitcoin, and alts tend to stagnate. But when Bitcoin starts to lose that dominance, it’s game on for altcoins.
In the last two cycles, we’ve seen a huge shift in how this plays out.
In 2017, Bitcoin dominance dropped by a massive 63%. You know what happened next? We saw one of the biggest alt seasons in crypto history. People who were paying attention and got in early made life-changing gains.
In 2021, there was a similar story, though a bit more muted. Bitcoin dominance dropped by 45%, and while the altseason wasn’t quite as explosive as 2017, it was still huge for those of us who were holding or rotating into the right altcoins.
And here’s where we are now — 730 days into the current market cycle, and Bitcoin dominance has risen by about 50%. That’s where we stand today, and the big question is: What happens next?
The Patterns Speak Loudly — But What Will 2025 Bring?
If you’re like me, you’re always on the lookout for patterns in the market. Why? Because history doesn’t repeat itself exactly, but it often rhymes. And in crypto, we’ve seen a familiar story play out in past cycles.
In 2017, alt season exploded after Bitcoin dominance cratered.
In 2021, we saw a similar, albeit smaller, version of that.
Now, as we approach 2025, we’re once again seeing Bitcoin’s dominance hitting a high. And that’s usually the calm before the altcoin storm.
If the current BTC.D cycle follows the same path, we could be setting up for another massive altcoin boom — one that could rival or even surpass what we saw in 2017 and 2021.
Here’s where it gets interesting. If Bitcoin dominance starts to fall, we could be looking at a multi-month alt season where the right altcoins go parabolic. And trust me, when alt season hits, it’s not like a gradual bull run — it’s aggressive and fast-paced. If you’re not already positioned or at least preparing, you could miss out on some serious upside.
What Happens If Bitcoin Dominance Stabilizes?
Now, let’s play devil’s advocate here for a minute. What if this time is different? What if Bitcoin dominance stabilizes at these levels and doesn’t drop like it did in the past?
Here’s the thing: Markets evolve, and while we can rely on patterns to a degree, you always need to be prepared for the unexpected. If dominance doesn’t drop, that alt season we’re all anticipating could be delayed or even minimized. And in that scenario, the game plan shifts — Bitcoin may continue to soak up the liquidity, and you’ll need to adapt your strategy accordingly.
That’s why it’s so important to keep a close eye on the signals. It’s not just about blindly holding and hoping. You need to stay nimble and ready to adjust based on what the market is telling you.
2017: A Look Back at the Mother of All Alt Seasons
Let’s take a moment to revisit 2017 because if you weren’t in the market back then, it’s worth understanding what went down. As Bitcoin’s dominance dropped by 63%, altcoins didn’t just perform well — they exploded. We saw coins like Ethereum go from under $10 to over $1,000. Projects that were flying under the radar shot up 10x, 20x, even 100x in some cases.
Investors who had diversified into altcoins during Bitcoin’s drop made life-changing money. And it wasn’t just ETH. Coins like XRP, NEO, and IOTA were hitting unbelievable numbers. It was one of the craziest, most lucrative times in crypto.
But — and here’s the key takeaway — those gains only happened for people who were already in position. By the time the media was screaming “Alt Season!” it was already too late. If you were only hearing about the big moves on Twitter and CNBC, you’d already missed the majority of the run.
2021: Another Big Year for Alts, But Not Quite the Same
Fast forward to 2021. Once again, we saw Bitcoin’s dominance drop, this time by 45%. And just like in 2017, altcoins surged. But it wasn’t quite as dramatic as the previous cycle. Don’t get me wrong — people still made serious money. Coins like Solana, Avalanche, and Polygon delivered massive gains.
But if you were hoping for another 2017-style blow-off top, you might have been disappointed. The market matured a bit, and the gains, while substantial, were more spread out. This was a key lesson for anyone who was expecting a carbon copy of 2017: Cycles don’t always play out the same way.
2025: The Next Alt Season?
Now we’re looking ahead to 2025. We’re 730 days into this current cycle, and if the past two cycles tell us anything, it’s that Bitcoin dominance could start dropping soon. If that happens, altcoins will likely take center stage again, and the potential for another parabolic alt season is very real.
Look at this rising wedge and Sto rsi.
Once it breaks down and Sto RSI is overbought.
It’s your altseason.
But the big question remains: Will this time be like 2017, or will it be more like 2021? Or, will we see something entirely different?
I don’t have a crystal ball, but here’s my take: If Bitcoin dominance follows its historical pattern, 2025 could be another monster year for alts. But even if it doesn’t, there will still be plenty of opportunities for sharp traders who know how to play the rotations and aren’t afraid to move in and out of positions quickly.
Key Observations to Keep in Mind
Let’s quickly recap the key points you need to watch:
2017 Alt Season: A 63% drop in Bitcoin dominance triggered one of the most explosive altcoin seasons ever. If you were in alts, you made serious gains. If you were only in Bitcoin, you missed out.
2021 Alt Season: A 45% drop resulted in a more moderate alt season, but altcoins still performed incredibly well.
2025 Outlook: We’re 730 days into the current cycle with a 50% rise in Bitcoin dominance so far. The next move in dominance will be critical. If BTC.D starts to drop, it could be the signal that alt season is about to kick off again.
Final Thoughts: Are You Ready for What’s Next?
Here’s the bottom line: History shows us that altcoin seasons follow a drop in Bitcoin dominance. Whether 2025 plays out exactly like 2017 or 2021, or if it’s a completely new scenario, the key is to stay prepared. That means keeping a close eye on Bitcoin dominance, positioning yourself in the right altcoins, and being ready to move when the signals start flashing.
If Bitcoin loses dominance again, we could see another massive altcoin surge. But if dominance stabilizes or increases, that alt season may be delayed, or not happen at all. Either way, having a plan in place is crucial.
Stay sharp, stay prepared, and let’s see what 2025 brings. You don’t want to be sitting on the sidelines when the next big opportunity comes.
1/ 🚨 ALT SEASON ALERT: Will History Repeat? 🚨
Let’s talk #BitcoinDominance (BTC.D) and why it matters for altcoin season.
If you're holding alts or thinking about rotating into them, pay attention—this could be a game-changer.
Thread
#Altseason#Crypto#bitcoin#btc— Digital Vault (@DigitalVault1)
1:55 AM • Oct 14, 2024
Your next step
Stay tuned to my next issue, where I will continue to give my insights on crypto + entrepreneurship to financial freedom!
Give me a like or share if you like my content, much appreciated!
Follow me on twitter (@Digitalvault1)