"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 

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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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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.

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

Bybit Learn

DeFi

Liquid staking derivatives are a representation of a token holder’s staked assets. Find out more about how liquid staking derivatives work in this article.

Staking has become a popular feature amongst many cryptocurrency holders today. When a token is 

, it is dedicated to supporting the strength and security of its network. When a cryptocurrency token holder stakes tokens, he or she can receive a staking reward for their support. In addition to providing cryptocurrency holders with 

, staking often provides governance rights. However, it also presents the challenge of capital inefficiency. Liquid staking stands as a solution to the capital inefficiency problem.

 is an alternative to traditional staking that offers flexibility and greater efficiency. Specifically, it allows stakers to access their assets while still enjoying the benefits of staking their tokens.

Staking tokens has traditionally had a high opportunity cost for token holders. By staking their tokens, they agree to lock up their assets for a specific period of time. By doing so, they may miss out on opportunities to profit by trading their tokens or using them in other ways. This opportunity cost may deter some token holders from participating in regular staking. Through liquid staking, however, networks enjoy the stability and security associated with staked tokens. At the same time, token holders have the ability to use their assets as desired while still receiving staking rewards.

 are used extensively throughout the financial sector. They are contracts between two entities. The price of a derivative is determined by the underlying asset’s value fluctuations. In addition to liquid staking derivatives, other types include 

. With cryptocurrencies, the two parties contractually speculate on the future value of a cryptocurrency at a specific date. Variations in pricing represent the opportunity for profits. Liquid staking derivatives use tokenization so that participants can benefit from derivatives while also enjoying the benefits of staking their tokens.

When tokens are staked, they typically are locked for a period of time. This means that they cannot be traded or withdrawn for that time period. This provides greater stability to the network, but it creates inefficiency for stakers. Liquid staking provides a staker liquidity on their staked tokens via tokenization. Liquid staking derivatives are tokens that have an equivalent value to the amount that the user has staked. 

Through the use of the liquid staking derivatives tokens, the assets of an equivalent value may be used on other DeFi protocols and still earn staking rewards. With liquid staking, token holders may be more motivated to stake their native tokens and contribute to the stability and security of the network.

Why Is Liquid Staking an Alternative Post-Merge?

, where users could become validators by staking 32 ETH. However, their ETH tokens were subject to a locking period. This meant that the staked assets will be illiquid for a period of time.

On Sep 15, 2022, the Ethereum network successfully 

 with its Beacon Chain, and this transitioned the entire Ethereum network from a proof of work (

) protocol to a PoS protocol. The miners that participated in the PoW protocol were completely replaced by validators staking their ETH tokens. While the launch of The Merge did not allow existing stakers to withdraw their locked tokens, this will soon change with the 

The appeal of soon being able to withdraw staked ETH may entice new staking users, but not every investor has 32 ETH to spare for staking. Since staking is a viable option to 

, users may try to look for alternative ways in which they can stake ETH without compromising liquidity. As a result, the rise in popularity of staking ETH on the Beacon Chain has inadvertently also led to the rise of liquid staking protocols. 

Liquid staking protocols such as Rocket Pool allow ETH holders to stake as little as 0.01 ETH in exchange for ERC-20-compliant liquid staking derivatives. These tokens are backed one-to-one, allowing users to have the flexibility to enter or exit the market whenever they want. Further, since the tokens are derivatives, investors gain access to additional markets. With a lower barrier to entry along with higher flexibility in terms of liquidity, liquid staking protocols encourage more ETH holders to stake their tokens and support the enhanced security and stability of the Ethereum network in the process.

Before jumping into liquid staking, it is important for cryptocurrency holders to understand how this could impact their financing holdings. As is true with many other aspects of cryptocurrencies, liquid staking derivatives have both benefits and drawbacks that require a closer look.

Through liquid staking protocols, those with staked ETH or other staked tokens do not have to lock their assets up to receive staking rewards. In exchange for staking their tokens, they get liquid staking derivatives that can double as collateral in DeFi 

 protocols. These tokens enable token holders to generate passive income through staking rewards while still taking advantage of liquid assets. Unlike regular staking, liquid staking solutions offer the best of both worlds.

Staking ETH and other tokens does more than generate staking rewards for the token holders. It also supports the network by enhancing its stability and security. However, because regular staking requires the token holders to lock away their tokens, staking ETH or other tokens has not been embraced by all token holders. Liquid staking derivatives, however, provide the liquidity that token holders may need or want even while their tokens are staked. Because of this, token holders may be motivated to contribute to the network through liquid staking.

While liquid staking derivatives offer exciting benefits, liquid staking is not without its risks and drawbacks. Node operators on a PoS network are faced with the risk of financial loss from slashing. A slashing mechanism is beneficial in that it discourages misbehavior by validators and promotes the availability of the validator, security and network participation in the process. Misbehavior usually entails double signing or validator downtime. When misbehavior is detected, even if the behavior is not intentional, a percentage of the validator’s tokens will be lost.

Staking ETH or other tokens supports the network, and token holders are incentivized to do so through a reward mechanism. Regular staking comes with some predictability regarding how many coins will be supporting the network at a specific time. Because of this, regular staking may have a higher yield than liquid staking. Liquid staking enables token holders to unstake their tokens and remove them from the liquidity pool as desired. While this can be a downside for some stakers, the lower yield may allow crypto investors to profit in other ways through their liquid staking derivatives tokens.

Liquid staking and regular staking are comparable in some ways. For example, staked ETH or other staked tokens contribute to the support and growth of the network. This holds true for both liquid staking and regular staking. In addition, both of these staking protocols yield rewards for token holders. This yield is a source of passive income.

There are also key differences between regular and liquid staking protocols. For example, liquid staking results in the creation of liquid staking derivatives tokens, which are valued at the same price as that of the staked tokens. Through liquid staking derivatives, stakers can contribute to the network while taking advantage of liquid assets. This is unlike regular staking, which requires the tokens to be staked and unavailable for trading. 

In addition, the yield from regular and liquid staking protocols often differs. Generally, the yield is higher with regular staking. However, liquid staking enables token holders to potentially profit from their liquid staking derivatives tokens in other ways while generating staking rewards. Another difference is the ability to participate in mini pools through liquid staking. For example, 32 ETH must be staked to function as a validator through regular staking. Liquid staking derivatives enable token holders to stake a smaller number of tokens for the benefit of participation.

There are various liquid staking solutions out there on the market that have both comparable and unique pros and cons. In addition, their fees may vary. What are some of the best liquid staking protocols?

 is one of the most popular and best liquid staking protocols. It functions with its native token, LDO. This is a 

 that is used to support ETH liquid staking. When users stake ETH on Lido, they receive stETH in exchange. stETH can be used across the DeFi ecosystem to yield more rewards. The APR for ETH on Lido DAO is 4.9%. 

Notably, Lido DAO is a well-capitalized platform that focuses on growth and enhancement. However, currently, a large portion of Lido’s staking power is centralized, and this presents the risk of a 

. Lido charges a 10% fee, which is evenly split between the DAO and node operators.

 is a liquid staking protocol that allows users to stake ETH in exchange for frxETH. frxETH is a stablecoin loosely pegged to ETH and users can exchange frxETH for sfrxETH to accumulate staking yields. The platform’s validators are run via Frax Finance’s in-house team, and this comes with some of the inherent risks associated with centralization. 

However, ETH staked through Frax Finance yields up to a 10% return, which is notably higher than what other liquid staking protocols offer. The higher yield is due to its significantly large treasury holdings of 

. Frax Finance charges a 10% fee on staking rewards. Of this fee, 20% is applied to the insurance pool, and the other 80% goes to veFXS holders.

 is a popular liquid staking provider that is often compared to Lido. However, Lido functions with permissioned node providers while Rocket Pool is decentralized. 

Rocket Pool offers two types of staking options for ETH holders — rETH tokenized staking and node staking. rETH tokenized staking allows users to stake as little as 0.01 ETH. The staked ETH will contribute to the deposit pool that enables a Rocket Pool node operator to create a new Beacon Chain validator. In exchange for staking, users receive rETH that they can trade for RPL rewards.

On the other hand, users who have more capital can opt for node staking. This option is specifically designed so that even those who lack technical expertise can benefit from operating a node. Node staking requires users to stake 16 ETH. The remaining 16 ETH to form the entire 32 ETH will come from the deposit pool contributed by rETH tokenized staking. This will then establish a new Ethereum validator known as a mini pool. 

Rocket Pool charges a fee of 5% to 25% of staking rewards which is paid directly to the node operators.

 supports the development of decentralized apps (

, ANKR. This token is used for governance, paying for Ankr services and staking. By staking assets on Ankr in exchange for ankrETH, stakers also have the ability to earn farming rewards. These rewards are in addition to the rewards from liquid staking derivatives. By staking the farmed rewards, a compounding effect is generated. 

Liquid staking is a relatively new option for generating income through cryptocurrencies that is generating a buzz among crypto enthusiasts. While it may be viewed as being similar to regular staking, it comes with different risks and rewards. More than that, each liquid staking provider has different fees and return rates to consider. With these factors in mind, you may be wondering if liquid staking derivatives are a good option for you.

The primary benefit of liquid staking is the ability to retain the liquidity of crypto assets while also generating staking rewards at the same time. Because those staked assets continue to be in play for trading and other activities, token holders may be able to profit from other activities while also generating staking rewards. However, the return for liquid staking may be lower than it is for regular staking. Hence, token holders should thoroughly compare the options available as well as their unique goals before deciding which staking protocol is best for them at that specific moment in time.

Liquid staking derivatives are shaking up the cryptocurrency world with the unique benefit of maintaining the liquidity of their tokens while also drawing staking rewards. For many token holders, the flexibility that this provides is a true benefit. With a variety of liquid staking providers available and with key differences between them, a closer look at each provider is essential before taking advantage of liquid staking.

Liquid Staking Derivatives: A Staking Alternative Post-Merge

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