"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.

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 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

Bybit Learn

Blockchain

Canto is an L1 blockchain software that allows users to complete zero-fee crypto transactions with the highest levels of accessibility, privacy and freedom.

For years, crypto users have complained about high usage fees for 

 that seem to benefit those who can afford to pay a higher premium a whole lot more than the average user. They argue that blockchain technology should be free to use and that new users shouldn't have to be stuck in a position of paying excessive rent to people who were lucky enough to hear about the platform during a presale. Luckily for these crypto users, that problem may have been solved.

CANTO is the official native token of the Canto blockchain. For clarity, CANTO (in all capital letters) is the token and Canto (only the first letter being capitalized) is the underlying Blockchain technology.

CANTO is used to secure the network through 

 with validators. At launch, 150 million tokens were issued out of the initial total supply of one billion. The current plan is that the other 850 million tokens will be distributed over time, a process that has already begun in earnest.

 token with a value of around $1, which serves as Canto’s unit of account. It is not possible to create NOTE, as it is only available by borrowing from the Canto Lending Market. Users must post collateral in either USDT or USDC tokens and all interest gained by the market has been earmarked for public-use projects.

Despite some sources claiming otherwise, it is important to know that NOTE is not technically considered a 

, as its value is not pegged to the U.S. Dollar. Instead, interest rates are raised or lowered by the Canto DAO in order to bring the price closer to the target of one USD.

Canto was created in August 2022 by a grassroots collective of people who supported the DeFi movement, including Scott Lewis (the co-founder of 

 crypto). They felt that it was time to develop a decentralized financial network that could be run cooperatively without charging excessive fees to users, particularly new ones.

, Canto was not funded by venture capitalist firms. There was no presale and it does not offer vesting. It is funded purely by idealistic backers who received 2% of the original supply of CANTO. It is currently being developed by a team that includes Lewis, the 

These are just a few of the developers on the project. The main (public) team represents a larger group of developers whose identities are not considered important to the project. They work anonymously in order to further the mission's goals, instead of for personal glory or their own financial interest.

Put simply, the main inspiration behind the project is that users are able to use blockchain technology and trade crypto freely in both senses of the word. To borrow from a Richard Stallman quote, Canto and its related FPI applications are both "free" as in freedom (it has complete access with no restrictions) and "free" in the sense that there are no rent or usage costs to end-users.

Canto aims to become the best execution layer protocol for original work. To achieve this goal, it heavily uses its Free Public Infrastructure (

For comparison, the idea is similar to the one undertaken a few years ago by traditional stock market trading platforms like Merill Lynch, TD Ameritrade, and others, where they eliminated the standard 50-cent commission for stock purchases and instead only charged options traders. This led to a massive increase in the number of retail traders.

The project and its developers hope to revolutionize the blockchain in the same way, by reducing user fees and discouraging rent-seeking behavior. This allows normal users freer access to crypto trading and could eventually increase the number of crypto traders worldwide.

Canto works like other Layer 1 blockchain platforms, allowing users to trade crypto, 

, and other digital assets through a peer-to-peer connection. It uses the 

 to verify transactions immediately, unlike other exchanges such as Bitcoin which have a higher-energy proof of work (

Canto is a general-purpose blockchain that requires no permissions and is based on the Ethereum Virtual Machine (

). Through its liquidity mining program, it is self-sustaining without the need to charge rent or crypto transaction fees from its users. These liquidity mining incentives provide CANTO stakers with additional tokens that can be further invested for additional gain, as well as the ability to vote on governance measures.

One important distinction between Canto and other Ethereum-based systems is that, due to the lower energy and higher efficiency of the updated EVM system, block times are significantly lower. 

 runs an average block time of about 12 seconds, while Canto EVM has an average running time of about six.

One of the main ideas behind the project is that it provides a Free Public Infrastructure for conducting blockchain transactions. Most other exchanges, which are often backed by venture capitalists from the start, tend to benefit those initial contributors and settlers at the expense of new users.

As mentioned, since Canto has no VC firms behind it, it can focus on offering a majority of its services for free, because it has no outside investors that need to be repaid. It was built on the belief that blockchain technology should be accessible to everyone, not just those who were lucky to be there when it started.

 allows users to bridge assets from Ethereum, 

. It acts in the same way that a real-life bridge would, allowing things to move from one "island" or location to another. It connects those third-party platforms like Cosmos to the Canto EVM and allows for assets to be taken in or out of the project's ecosystem.

Canto’s liquidity providers (LP) can use the 

 interface on the official website to exchange liquid assets and receive Canto LP tokens. Currently, there are five liquidity pools: CANTO/NOTE, CANTO/ETH, CANTO/ATOM, NOTE/USDC and NOTE/UDST. In keeping with the spirit of the project, there are no fees for liquidity providers.

 allows users to loan out their assets to the network in exchange for additional assets (i.e., they receive their initial stake back, plus interest in the form of additional Canto LP Tokens). These liquidity mining incentives cannot be borrowed from the CLM (see below) but can be reinvested as collateral to receive additional NOTE tokens.

) allows users to obtain NOTE tokens by putting up collateral in either USDC or UDST. Should the value of NOTE be higher than that of the collateral, users will be able to turn a profit by holding NOTE tokens.

To increase the capital efficiency of the CLM, additional tokens will be added to the collateralization pool in the future, although it is not yet known which assets will be introduced to the system.

 v2 and operates with an automated market maker (

) that allows users to complete borrowing or lending transactions using the underlying liquidity pool instead of forcing peer-to-peer transactions, which reduces wait times and makes the system self-sustaining. As long as liquidity mining incentives are given to stakers, the CLM will always be available.

 allows investors to "lock up" their tokens for a set amount of time to ensure the security of the network. There is a 21-day minimum hold period, however, meaning stakers won't be able to take back their CANTO tokens until those three weeks have expired.

There are several benefits to staking, including interest paid in the form of additional CANTO tokens. Additionally, all stakers receive voting rights when new governance proposals are issued by the Canto DAO. This allows the system to avoid being overtaken by bad actors who want to exploit the system for their own gain.

Since Canto was built on the ideas of freedom and equality for all, it runs under a new system called Unified Governance. That means that any staker can participate in the 

 of not only the network itself but the Canto Lending Market, as well as any new FPI applications.

Note that this does not apply to the exchange itself, the 

. It can never be upgraded, it cannot produce new tokens and it remains ungoverned. These actions were put in place to discourage rent-seekers from abusing the system, which would be a violation of the project's entire mission.

In the future, there are plans to expand Canto’s operation into further FPI applications, allowing crypto users to bridge crypto from additional sources and networks into the Canto DEX. Backers believe that an increase in free public infrastructure is vital to the crypto and blockchain landscapes.

The Canto Lending Market will also relax and become less conservative over time, as well as add support for additional collateralization assets. The DAO that controls the system will be able to allow the CLM to produce greater capital efficiency once the system is fully in place and certain benchmarks have been reached.

Above all, every action taken by the DAO will ensure that free access to the Canto blockchain system is maintained for all users, the system continues to be self-sustaining by rewarding stakers and discouraging rent-seekers from attempting to take over the project.

CANTO operates on an inflation system, where the amount of CANTO available changes by varying amounts, with stakeholders receiving additional coins after every inflation period. The percentage started at nearly 20% and each successive period will be lower until it eventually trends toward 0%.

The total number of available tokens will eventually reach one billion. At creation, 130 million (13%) coins were issued to the first contributors and 20 million (2%) were issued to the Settlers who helped test Canto’s initial framework. 450 million (45%) of the remaining total supply is allocated to long-term liquidity mining while 350 million (35%) is reserved for medium-term liquidity mining. The last 50 million (5%) CANTO tokens are kept for future public goods grants. At the time of writing (Feb 27, 2023), close to 442 million CANTO coins have been issued.

 predict that CANTO will increase by nearly 225% by the end of the year 2025. They state that every technical analysis they've run on CANTO indicates that the price will continue to rise over the next few years, hitting $1.84 and $5.34 by 2025 and 2030 respectively. 

 is also bullish on CANTO, suggesting that CANTO price will break $1 by 2024. CANTO price is believed to reach $1.70 by 2025 and $9.99 by 2030. 

CANTO experienced a slight peak at $0.39 on Aug 26, 2022 after its launch in the same month. Its price then declined steadily to approximately $0.10 before recovering slightly to hit a lower peak of $0.34 on Nov 5, 2022. This was followed by a sharp decline in price when the FTX exchange went bankrupt and devastated every sector of the cryptocurrency market in November. However, LDO price quickly recovered and, in January of 2023, exploded in price with a 700% increase, going from its all-time low of $0.07 on Jan 1, 2023 to its all-time high of $0.76 on Feb 7, 2023. As of Feb 27, 2023, CANTO’s current price is $0.43.

Based on the above information, CANTO is considered an excellent investment opportunity. Like all investments, cryptocurrencies have inherent risks and success is not guaranteed. However, based on the expert predictions listed above, CANTO's price is expected to continue increasing over the next decade.

It should be noted, of course, that this is not financial advice and investors are free to make their own decisions. Despite all of the positive predictions and expectations, Canto is still an experimental application. As with all investments, crypto traders should only invest as much into this project as they can afford to lose.

Crypto users who want a solid Layer 1 blockchain to conduct transactions anonymously and without any transaction fees will definitely want to consider both using Canto and investing in the associated coin. Supporters of the Canto Network believe that FPI technology is the future of crypto trading and the blockchain itself. If they are correct, it could become the most popular blockchain on the market and overtake the competition, due to its emphasis on putting users over profits.

Canto (CANTO): The Layer 1 Blockchain Powered by FPI

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards