Altcoin Season 2023: How to Play the Next Crypto Bull Run

Why Altcoins Are in the Spotlight Now

Altseason—the moment when altcoins outshine Bitcoin—is not just happening by chance. This phenomenon occurs as capital shifts from Bitcoin to smaller cryptocurrencies, a cyclical pattern that repeats in the late phase of Bitcoin’s four-year boom-bust cycle.

What makes 2023 potentially special? Stablecoin reserves are at record highs, Bitcoin dominance is decreasing, and a wave of new narratives—ranging from AI coins to Real-World Assets—is waiting for its moment. These are the signals professional traders are listening to.

The Critical Metrics: How Do You Recognize Altseason?

Not all periods are altseason. You need concrete data.

Bitcoin dominance tells the story: when Bitcoin’s market share drops from, say, 50% to 40%, it indicates that capital is systematically migrating to altcoins. Historically, this has been a precursor to an altcoin rally.

The Altcoin Season Index works simply: if 75% of the top 50 altcoins outperform Bitcoin over a certain period, you’re in altseason. Currently? We’re in a gray zone—Bitcoin dominance is decreasing, but the Index still doesn’t give a strong “go” signal.

Stablecoin metrics are gold: high USDT and USDC reserves mean investors are ready to deploy capital. This is literally the fuel for altcoin pumps.

New Narratives: What Drives This Altseason?

The altseasons of 2017 (ICO mania) and 2021 (DeFi, NFTs, meme coins) were each defined by one dominant story. 2023 feels different—multiple competing narratives are emerging simultaneously:

• Tokenized Real-World Assets (RWA): physical real estate, gold, and commodities on the blockchain. This brings traditional finance closer to crypto.
• AI-related Coins: now that AI dominates the tech landscape, crypto projects with an AI focus automatically follow.
• Bitcoin Layer-2 Innovations (BRC-20): new token possibilities on Bitcoin itself.
• Decentralized Physical Infrastructure (DePIN): projects decentralizing telecom and energy networks.

Each of these narratives attracts speculative money. Retail investors chase the next “big thing,” creating enormous price volatility—both upward and downward.

The Psychology of Greed: Understanding FOMO

Altseason is not rational. It’s driven by FOMO (fear of missing out) and the dream of 10x returns. Retail investors see stories of someone who got in early on Dogecoin and is now a millionaire, and they want to experience that too.

This behavior:

• Artificially inflates prices
• Creates huge demand for lesser-known altcoins
• Leads to 99% losses for latecomers

How to navigate this? Ask yourself:

• Am I in this project because I understand it, or because others are talking about it?
• Have I set clear buy and sell targets, or am I trading on gut feeling?
• How much of my portfolio is in one altcoin?

Institutional Money Changes the Game

This altseason is different because big players—venture capital funds, institutional investors, regulators—are now seriously participating. This brings both advantages and risks:

Advantages:

• More capital, less extreme volatility
• Projects with real use cases gain focus
• Long-term stability

Risks:

• “Pump and dump” schemes are now more professional
• Projects without fundamentals get quickly discarded
• Regulations can change rapidly

How to Limit Risk While Maintaining Growth Potential

Altseason is a gambler’s paradise, but you don’t have to put everything in.

Three core rules:

1. Diversify: don’t put everything into one altcoin. Better 10 projects with 2% each than 1 project with 20%.
2. Fundamental research: understand what the project does before investing. Does it have an active team? Real users? Or is it just hype?
3. Set fixed exit points: decide in advance: “If this triples, I sell half. If it drops 50%, I stop.”

Metrics to check daily:

• OTHERS Index (performance of non-top-10 altcoins)
• Bitcoin dominance chart
• Stablecoin inflows to exchanges

This combination gives you an honest picture of whether the market is still in altseason mode.

The Pitfall Everyone Falls Into

• Overconfidence in early gains: “I was right on project X, so I’m also right on project Y”—no, that’s not how it works.
• FOMO buying at peaks: the worst time to buy is when everyone is talking about it.
• Lack of risk management: one hack or regulatory move and your altcoin can go to zero.

Practical Action Plan for the Coming Months

1. Create a watchlist: 5-10 altcoins in the narratives that interest you (RWA, AI, DePIN—pick two).
2. Monitor the metrics: check weekly Bitcoin dominance and the Altcoin Season Index.
3. Wait for confirmation: don’t trade until at least 2 of the 3 signals align (decreasing dominance + rising stablecoin reserves + Index above 75%).
4. Start small: if you’re building an alt portfolio, be cautious. 5% of your crypto capital is enough.
5. Set automatic sells: no “sell later when I’m right”—pre-plan your exits.

The Verdict

Altseason 2023 feels real. Bitcoin dominance is decreasing, stablecoins are in reserve, and new technologies are waiting for their moment. But this is not a guarantee—it’s a probability.

The investors who win? They don’t see altseason as an “all-or-nothing” moment, but as a landscape full of opportunities and risks. They research, diversify, and keep emotions out of it.

Yes, this is playground for quick-money thinking. But it’s also a place where reckless investors lose their own money. Choose wisely.