Bitcoin (BTC), the pioneer and largest cryptocurrency, has led the recent digital asset rally. Still, whispers suggest smaller players, or “altcoins,” are gearing up for their moment in the spotlight. Bitcoin’s price surged to $71,808.47, nearing the $72,000 mark, up by 4.70% on March 12. Trading volume spiked by 76.91% to $64.61 billion in the last 24 hours, while the crypto market cap reached $1.41 trillion.
Let’s dive in to see which altcoins are gearing for Altcoin Season.
MEME Coin Craze Fades as Altcoins Season is Next
While meme coins’ remarkable rally has somewhat eased, a surge in other altcoins like Ethereum (ETH), XRP, Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) is gaining momentum. Investors are increasingly seeking speculative assets beyond Bitcoin, leading to a redistribution of wealth within the crypto market.
As Bitcoin’s price is at its peak, its impact on meme coins appears to fade. Dogecoin (DOGE) and Shiba Inu (SHIB) are seeing modest gains, while other altcoins are showing considerable strength. Ethereum has surpassed the crucial $4,000 milestone, with Ripple (XRP), Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) rallying alongside.
Other altcoins like Litecoin (LTC), Stellar (XLM), and Near Protocol (NEAR) are also posting significant gains, driven by anticipation ahead of the Nvidia 2024 GTC Conference. Market observers like @CryptoTony_ suggest a cooling-off period among meme coins, with investors shifting focus to promising altcoins.
Where’s the Altcoins Heading?
Matt Hougan, CIO of Bitwise, says a classic wealth effect causes this trend; crypto investors who are feeling happy about their Bitcoin profits look for better returns in other assets. Wealth is being redistributed this season as investors move their profits from Bitcoin to altcoins, which makes them more popular. So, historically once Bitcoin breaks its ATH, always within 2-3 weeks the real big Altseason starts. Total Altcoin Marketcap just flipped $1 Trillion into support next stop is the ATH at $1.7 Trillion
However, this altcoin season could be different from previous cycles due to the unique dynamics of the current bull market. Santiment’s insights indicate a notable shift, with Bitcoin reaching new highs and experiencing significant capital inflows through Spot Bitcoin ETFs. Meanwhile, altcoins are gaining attention amidst increased total crypto market capitalization and trading volume.
Mega Breakout Scenario
Bitcoin’s rally is fueled by fresh capital from big players, following the approval of spot BTC ETFs in January. This influx of institutional investment could prolong the altcoin season, impacting market dynamics in unprecedented ways.
In this scenario, if Bitcoin breaks its prior ATH and quickly doubles in a matter of weeks, it usually experiences a mega breakout without much of a pause. Surprisingly, during this period, altcoins might not get much attention until Bitcoin takes a breather after its initial surge.
