"Altseason," a term familiar to many crypto traders, refers to periods when altcoins significantly outperform major cryptocurrencies like Bitcoin and Ethereum.

In the ever-evolving landscape of cryptocurrency, "altseason" represents a pivotal phenomenon where altcoins significantly outperform major cryptocurrencies like Bitcoin and Ethereum. This article delves into the historical patterns of altseason, exploring its implications for investors and the broader market dynamics. By analyzing previous cycles, we uncover the factors that typically trigger these explosive periods of growth, as well as the current market conditions that may signal the next altseason. Understanding these nuances is essential for both seasoned traders and newcomers seeking to navigate the complexities of crypto investing.

Understanding Altseason: What It Is and Why It Matters

"Altseason," a term familiar to many crypto traders, refers to periods when 

 significantly outperform major cryptocurrencies like Bitcoin and Ethereum. Historically, these phases have been characterized by capital rotation from Bitcoin into smaller, riskier projects, often leading to explosive growth in altcoin prices. This phenomenon has been evident in the past three major bull runs, notably in 2017 and 2021, when altcoins surged in value after Bitcoin reached new all-time highs (ATHs).

Bitcoin’s price movements have been cyclical since its inception in 2009. By analyzing historical price data, we can identify distinct periods of boom, bust and recovery. Notably, the two most recent bull runs have witnessed pronounced altseason events, whereby altcoins recorded extraordinary gains, often multiplying their market caps significantly.

For instance, during previous altseasons, the total market capitalization of altcoins surged between 6x and 7x. This explosive growth not only provided immense profit opportunities for traders, but also underscored the 

 inherent in the cryptocurrency space. However, one must also recognize that altseason often precedes the end of a bull run, as profit taking from large-cap tokens leads to a market correction.

Despite the historical significance of altseason, the current cycle appears markedly different. Bitcoin has continued to reach new highs while maintaining a strong market dominance, contrary to the typical pattern in which 

 declines during altseason. This deviation raises critical questions about the nature of the current market, and whether a traditional altseason is imminent.

The Current Landscape: Indicators and Influences

Several factors contribute to the unique dynamics of the current crypto market. First, it’s informative to underscore the importance of Bitcoin’s halving events, which historically precede significant market capitalization and dominance shifts. In previous cycles, Bitcoin's dominance tended to decline approximately 230 days post-halving, leading to a capital rotation into altcoins. However, the recent halving in April 2024 didn’t trigger the expected decline in Bitcoin dominance, suggesting a potential structural change in market behavior.

Moreover, the performance of Ethereum (ETH) relative to Bitcoin has also shifted. Historically, Ethereum served as a primary beneficiary during altseason, often experiencing substantial gains as traders rotated out of Bitcoin. However, since 2022, Ethereum has underperformed not only Bitcoin but also several competing "Ethereum Killers," such as Solana (SOL) and Sui (SUI. This relative underperformance has raised doubts about Ethereum's capacity to lead the market into a new altseason.

 has further complicated the landscape. While the introduction of these ETFs has driven Bitcoin’s price to new heights, it’s also resulted in a capital flow that remains largely focused on Bitcoin and Ethereum. Many institutional investors appear hesitant to rotate their capital into smaller, more speculative altcoins, opting instead to remain in regulated ETF products.

Last but not least, there’s been a significant increase in 

 supply, which has risen by 66% since the start of 2024. This indicates that while institutional activity may explain some market movements, retail engagement remains robust. 

 (CEXs) recorded their largest trade volumes in Q4 2024, suggesting that retail traders are actively participating in the market, potentially looking for altcoin opportunities as liquidity increases.

What Lies Ahead: Potential Scenarios for Altseason

Given the current market dynamics, traders are left to ponder whether an altseason is on the horizon and what form it might take. The accompanying report presents several scenarios that could influence the emergence and nature of the next altseason:

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Bybit x Block Scholes Institution Report: Altcoin Rotation — Why Altseason Hasn’t Come This Time?

Feb 10, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Mixed Job Reports Rattle Market

The recent Bureau of Labor Statistics report indicates that U.S. job growth is slowing, yet remains healthy. Nonfarm payrolls grew by 143,000 last month, with upward revisions for November and December 2024, as they added 100,000 jobs. The unemployment rate has dipped to 4.0%, demonstrating a robust labor market, although the annual revisions suggest job gains were softer than initially reported, averaging 166,000 per month in 2024.

Simultaneously, inflation expectations are rising, driven partly by tariffs proposed by U.S. president Trump. Data from the University of Michigan reveals consumers anticipate price increases, which may complicate the Federal Reserve's decision-making. Fed officials have indicated they aren’t in a rush to lower interest rates further after a series of cuts last year, suggesting they prefer to observe how the economy reacts to potential policy changes.

The job growth in January 2025 was primarily concentrated in health care, retail and government sectors, while mining and manufacturing faced declines. Severe weather conditions contributed to nearly 600,000 people missing work, the highest impact in four years.

Despite these fluctuations, hourly wages increased by 0.5% month-over-month and 4.1% year-over-year, reflecting pressure on wages amid labor market tightness. The participation rate in the labor force stands at 62.6%, with notable contributions from foreign-born workers, highlighting immigration as a critical factor in employment growth.

As the Fed assesses the stability of the labor market, upcoming directives from the Trump administration, including potential immigration restrictions, could impact future job growth and economic conditions. While the landscape shows signs of moderation, it remains resilient, with cautious optimism surrounding economic stability.

Weekly Crypto Highlight — Crypto IPOs Coming

As reported, Gemini, the cryptocurrency firm founded by the Winklevoss twins, is potentially exploring an 

 (IPO) this year. The company is currently discussing the listing with potential advisers, although no final decisions have yet been made.

Bullish Global, a crypto exchange operator whose backers include billionaire Peter Thiel, is considering an IPO as soon as this year.

The interest in going public comes amid a surge of crypto firms accelerating their IPO plans since President Trump's election, as he has shown support for the industry. The Winklevoss twins, known for their legal battles with Facebook's Mark Zuckerberg, previously donated Bitcoin exceeding the campaign contribution limit to Trump, later receiving a refund for the excess.

Gemini employs over 500 people across several global locations, including New York, Seattle and London. Recently, the firm agreed to pay $5 million to settle a Commodity Futures Trading Commission (CFTC) lawsuit alleging it misled regulators while trying to launch the first U.S.-regulated Bitcoin futures contract. Additionally, Gemini has committed to returning at least $1.1 billion to customers affected by the Genesis Global Capital bankruptcy as part of a settlement with New York regulators relating to its Gemini Earn program.

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Weekly Institutional Insights: Mixed U.S. Job Reports; Crypto IPOs Coming

In our latest Learn 101 livestream session, crypto experts shared insights on Bybit Copy Trading Gold&FX.

 crypto on Bybit, you can now use copy trading for gold and forex. These markets are unique, and 

 provides an opportunity to learn effective strategies in these markets. In this nineteenth episode of our 

, we uncover Copy Trading Gold&FX Mastery.

 provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Feb 6, 2025 were two distinguished guests: Argiris Sotirakis, professional trader and founder of 

, and Eric Li, Financial Product Manager at Bybit. Under the moderation of Sabrina Chua, Crypto Evangelist and SEO Editor at Bybit, this episode explores Copy Trading Gold&FX Mastery.

Copy Trading 101 — Is It Really That Easy?

Copy trading offers a unique opportunity for investors to potentially outperform the market without dedicating countless hours to analyzing charts. Eric Li, an expert in the field, explains that copy trading involves mirroring the trades of seasoned professionals. 

During his presentation in this Learn 101 livestream, he shares his screen to showcase Bybit’s 

 platforms. For investors looking to diversify beyond crypto, 

 allows you to follow traders specializing in non-crypto assets like gold and forex. To access any of these features, users must first create a separate Copy Trading account on Bybit.

One standout feature of Bybit’s platform is its high-water mark system, which ensures that profits are shared fairly based on individual investments. This transparent approach aligns the interests of both the Master Traders and their Followers.

Argiris emphasizes that copy traders should experience results similar to those of their chosen Master Traders, provided they mirror trades simultaneously. However, he advises against putting all your eggs in one basket. “Diversification,” he says, “is key to minimizing risk and exposure to losses.”

Unlike platforms that rely on fiat currency, Bybit’s Copy Trading Gold&FX uses 

 (USDT). Eric emphasizes that this simplifies transactions and makes it easier for users to quickly follow multiple traders. Moreover, using USDT supports seamless integration with other Bybit features, offering more flexibility for your assets.

When it comes to selecting a trader to follow, Argiris Sotirakis cautions against relying solely on win rates. “A high win rate can be misleading,” he notes. Instead, he recommends evaluating a trader’s performance over time to understand how their strategies perform under different market conditions. He views copy trading as a long-term strategy, pointing out that it may take more than a month to see meaningful results — especially since various strategies thrive in different environments, such as trending markets versus sideways markets.

Eric Li further explains that Bybit offers tools to help users explore various strategy types employed by trading leaders. There are four primary strategy categories, each one focusing on distinct metrics and trading styles. For beginning traders, there’s even a strategy specifically designed to ease them into the world of copy trading. Additionally, traders can search for leaders based on the market they operate in, whether crypto, gold or forex.

One common misconception about copy trading is the perceived loss of control over your assets. Eric Li addresses this concern by highlighting several 

 tools available to users. For instance, copy traders can set custom limits, adjust take-profit levels and even pause or stop copying a trader at any time. “You still have full control over your assets,” Li reassures, “from selecting the right leader to fine-tuning your risk management settings.”

Gold & Forex Trading: The Secret Sauce Pros Don’t Share

Gold is widely regarded as a safe-haven asset, while forex is globally the largest and most liquid market. But many traders still wonder how to profit from the two. According to Argiris, success in these markets hinges on volatility and smart use of 

. Leverage amplifies profits, but managing it wisely is key to minimizing risk.

Recently, gold’s price has seen substantial growth, offering more opportunities for traders. While it’s a less volatile asset than cryptocurrency, leveraging gold can turn small price movements into significant gains. Sotirakis suggests that balancing leverage between crypto and gold helps reduce overall risk. Forex, on the other hand, is far more volatile, and the way leverage is used directly impacts risk exposure. He notes that forex trading can be more stressful, especially for 

Choosing the right strategy is crucial. With a solid 

 ratio, even small market moves can lead to profits. Many smart money strategies from crypto trading also apply to gold and forex, making it easier for traders to diversify across markets.

To help traders get started, Eric Li demonstrates Bybit’s Gold&FX Trading platform, highlighting its 

. This risk-free tool allows traders to practice strategies without using real money, making it ideal for learning during volatile market conditions. Sotirakis also advises using demo trading to test strategies, especially when markets are unstable. If losses pile up, it’s often a sign that your leverage is too high and needs adjustment.

The minimum investment to join Bybit Copy Trading Gold&FX is 100 USDT, though some Master Traders may require a higher amount. Choosing a Master Trader whose trading style aligns with your risk tolerance is essential.

Bybit Copy Trading Gold&FX Fiesta Time! How to Join & Win Big

Looking to dive into Bybit Copy Trading Gold&FX? What better way to start than with the 

, featuring a substantial 130,000 USDT prize pool! But that’s not all — you can also unlock an additional 5,000 USDT in rewards through the 

According to Sotirakis, events like the Copy Trading Gold&FX Fiesta are perfect for those who want to start trading without spending hours analyzing the markets. Moreover, as Li points out, you can copy trade up to 10,000 USDT per 

, giving you the flexibility to maximize your potential rewards.

This Learn 101 livestream session delivers valuable insights about Copy Trading Gold&FX Mastery, showcasing how copy trading simplifies the process of learning from seasoned experts. With Bybit’s demo function, you can practice copy trading strategies risk-free, allowing you to gain confidence without any financial exposure. Getting started is easy — just 

Intermediate

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Learn Live ICYMI: Trade Gold&FX Like a Pro

Soneium and Coop Records are partnering to revolutionize music monetization in Web3. 

S&P 500 futures rebounded after Trump’s tariff announcement but fell 1% on Friday amid economic uncertainty. Gold rose to $2,865 on trade tensions and China’s buying, while strong U.S. jobs data may limit Fed rate cuts. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.07%, with Bitcoin and Ether dropping by 0.80% and 1.81%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is ALEO, which surged 9.7% after Aleo joined ETHDenver 2025 as a Meta Sponsor to drive blockchain innovation.

Aleo (ALEO), launched in 2024, is a privacy-focused Layer 1 blockchain using ZK proofs for secure transactions. It supports private DeFi and decentralized apps and is backed by $228M from investors like a16z. 

, contributing to the event’s mission of fostering innovation and pushing the boundaries of blockchain technology. ETHDenver expressed gratitude to Aleo and other sponsors for making the event possible.

Check Out the Latest Prices, Charts, and Data of 

 to revolutionize music monetization in Web3. Coop Records, a community-owned label with 600+ on-chain songs, aims to give artists fairer control over their work. Their first collection on Soneium features unreleased music from Tokyo-based producer NUU$HI, available on the Sonova NFT marketplace for seamless creator and collector experiences.

BTC Spot ETFs saw a net inflow of $203.8M from Feb 3-7, with GBTC outflows of $14.7M and non-GBTC inflows of $218.5M. Overall, cumulative GBTC outflows stand at $21.91B, while non-GBTC inflows total $62.61B, resulting in a net inflow of $40.71B.

 is launching a confirmed $IFR token airdrop through its Inferno Points program. Users can earn points by completing tasks and checking in daily, with a 3X boost for a 7-day streak. Major AI projects are partners, and points will be redeemable for tokens.

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Soneium & Coop Records Redefine Music Ownership with On-Chain Monetization

Blockchain

Get insights on how the Proof of Stake is different from its predecessor. Learn the PoS mechanism, mining impact, and its pro & cons.

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Blockchain has become a ubiquitous term over the past couple of years. A growing number of enterprises and governments are opening to blockchain technology (and distributed ledger technology). Despite its rapid growth, there is still some confusion about crucial concepts such as ‘what is Proof of Stake’ or ‘what is consensus algorithm in a blockchain network.’ In the end, making it imminent to address these information gaps.

Proof of stake (PoS) is a consensus algorithm under which randomly chosen validation nodes (validators) stake native tokens (staking) of the blockchain network to propose or attest new blocks to the current blockchain. A validator will receive rewards by successfully adding blocks to the blockchain. 

This post aims to shed more light on crucial blockchain concepts, including:

Why Is Consensus Mechanism Important in Blockchain?

A consensus mechanism is a set of rules through which different participants within a blockchain network approve transactions. Since blockchain networks do not have a central authority to approve transactions, consensus protocols ensure that all the network participants agree to only a single version of the blockchain.

There are different types of consensus algorithms in existence, including Proof of Work (PoW), Proof of Stake (PoS), Practical Byzantine Fault Tolerance (PBFT), Proof of Burn (PoB), and other variations of the consensus algorithms.

(PoW) and Proof of Stake (PoS) remains the most popular. As a blockchain enthusiast or early adopter, it is critical to understand the difference between PoW and PoS.

PoW relies on nodes’ ability to solve complex mathematical problems that require an extraordinary amount of computation power, consumes electricity, and has a high initial setup cost.

PoS, on the other hand, requires validators to stake their tokens instead of solving mathematical puzzles, thereby reducing electricity consumption, as well as block the generation period, and avoiding centralization of resources. PoS also protocols use pseudo-random sequencing to choose validators.

The PoS mechanism involves two separate parts for it to work. Firstly, a validator node has to deposit tokens of the blockchain platform as a stake. These tokens are blocked for a set period. A higher stake improves the chances of a node being selected for forging the block.

It is critical to understand that prioritizing nodes with higher stakes is how PoS is designed. This practice ensures the validator has more skin in the game, making it economically unviable to act otherwise.

The second part of PoS involves choosing a validator for block forging (generation) randomly. There are multiple ways to select validators, these include:

Once a node is selected, the validator node verifies the transactions within a block, followed by signing the block. Other validator nodes attest whether the block is valid. As most validators rule in favor of the block, the block becomes a part of the blockchain. Then, the selected validator node will receive transaction fees as a reward.

However, suppose a block is categorized as fraudulent (error) by other validators attesting the block. In that case, the chosen validator loses a portion of the stake, and the process will restart. Consequently, the forger will be restricted from any block forging (generation) activities in the future.

Which Cryptocurrency Is Using The PoS Consensus?

PoS has come out to be a more efficient, quick, and less-resource intensive consensus mechanism. These qualities have led to a growth in proof of stake coins. Here are some of the most popular coins using PoS as a consensus mechanism.

Some other popular crypto coins using PoS or its variants include the Nxt (NXT), Algorand (ALGO), Cosmos (ATOM), Peercoin (PPC), Steem (STEEM), and more.

Why Does Ethereum 2.0 Use Proof of Stake?

That brings us to the question of why Ethereum 2.0 uses PoS. Well, the primary reason is to quicken the block generation (or forging now) time. Since blockchains using PoS require a comparatively shorter period to arrive at a consensus, it boosts the network’s overall throughput.

The Ethereum 2.0 update aims to further boost block forging speed through sharding, where every single shard chain will have the same processing ability as its predecessor’s Ethereum 1.0 network.

In short, shifting to PoS protocol will allow Ethereum 2.0 to become more scalable, efficient, and ready for transaction-heavy industrial applications.

Blockchain technology was touted as the technology of the future with decentralization at its core. However, its heavy reliance on computing resources led to the centralization of mining pools, thereby jeopardizing blockchain technology’s core objective.

The proof of Stake consensus protocol addresses some of the critical challenges blockchain technology is facing at the moment. As the global demand for green technologies arises, PoS consensus protocol becomes the norm in the blockchain industry.

However, there will always be a debate about PoS vs. PoW practicality, but as more blockchains implement PoS, more prospects are likely to emerge. The PoS protocol will take its due time while going through various development stages, but it’s undeniably one of the strongest contenders for consensus protocols as we advance.

Explained: What Is Proof of Stake (PoS) in Blockchain?

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Grab Up to 5,000 USDT in Rewards