As Bitcoin surges towards its historic all-time high, leading the crypto landscape, a subtle but significant shift is noticeable in the altcoins realm. Altcoins, the lesser-known players in the cryptocurrency realm, are poised to steal the spotlight.
Altcoins on the Horizon
K33 Research analysts have shed light on a compelling pattern in their recent report, indicating the imminent rise of altcoins. Comparing the current market trend to the late 2020 altcoin rally, they highlight a substantial increase in Bitcoin’s market cap relative to all other cryptocurrencies, excluding Ethereum (ETH). This pattern, reminiscent of past altcoin seasons, indicates the potential resurgence of altcoins.
In the words of K33 Research analysts, “Judging by history, altcoins will start outperforming about the time we are now… There is enough risk appetite to send a select few alts on big runs, but we have yet to see a new wave of retail entering the altcoin arena to create the rising tide that lifts all boats.”
Meme Coin Phenomenon as Precursor
The crypto market recently witnessed a surge in meme coins, including popular names like dogecoin (DOGE) and Shiba Inu (SHIB), as well as newcomers like Pepe coin (PEPE) and bonk (BONK). This sudden rally, with DOGE and SHIB gaining 40%-50% and newer tokens doubling in price, is seen as a potential precursor to the much-anticipated altcoin season. Notable performers include Dogwifhat (WIF), Pepe (PEPE), and Bonk (BONK), each showcasing impressive gains.
Amidst this “tremendous” meme coin rally, K33 Research analysts remarked, “There is enough risk appetite to send a select few alts on big runs, but we have yet to see a new wave of retail entering the altcoin arena to create the rising tide that lifts all boats.”
Swissblock Analysts’ Insights
Swissblock analysts’ notions of an impending altcoin resurgence have aligned with the reports of K33 Research. Key indicators, such as the median return of altcoins versus Bitcoin, hint at the beginning of an altcoin season.
Swissblock analysts, bullish on altcoins, stated, “Signs point to an imminent alt season… The key signal to look for to confirm the start of a period of altcoin outperformance is ETH’s clearing the $3,500 price threshold.”
Market Dynamics and Opinions
Santiment’s market insights underline the market shift that while Bitcoin is reaching its all-time highs since 2020 and substantial capital inflows into the market through Spot Bitcoin ETFs, altcoins are also capturing attention, driven by increased total crypto market capitalization and trading volume.
Renowned analyst Michaël van de Poppe supports the idea of an upcoming altcoin season. While not directly convertible to altcoins, the influx of capital into Spot ETFs signifies a broader market entry. Van de Poppe anticipates Ethereum reaching $4,500-5,000, with altcoins potentially delivering 2-4x returns.
However, another named analyst, Ali, suggested a potential correction for Bitcoin, as indicated by the TD Sequential indicator.
The crypto market seems to be on the brink of the altcoin season. Analysts and market observers are signalling the prelude to an altcoin dominance, drawing reference from historical trends and recent market dynamics.
