Altcoins
Bitcoin (BTC) Price Surpasses $68,000, Will Altseason Go into Effect Soon?
Earlier today, the price of Bitcoin (BTC) increased up to $68,800 inches away from reaching its highest levels ever. Strong inflows into recently launched Bitcoin ETFs have sparked an unprecedented rally in Bitcoin and the broader crypto market. However, some top market analysts believe that investors could start shifting funds from Bitcoin to altcoins, thereby kicking off the new season in the market.
The new AltSeason will start soon?
Over the past month, the altcoin’s market cap has jumped 50%, from $800 billion to $1.2 trillion today. The main contributors here were the coins which have given multiple returns just over the last week. On the other hand, top altcoins like Ethereum (ETH), Cardano (ADA)
Polygon (MATIC), etc. have not yet participated in the mega rally.
So, when does the altseason actually start? CrediBuLL Crypto, a popular analyst in the cryptocurrency space, delves into the much-discussed topic of altseason, offering insight into potential scenarios.
The analyst suggests that altcoins could start to outperform once Bitcoin (BTC) surpasses its previous all-time high (ATH). However, the timing of this change remains uncertain. CrediBuLL Crypto describes two possible scenarios based on historical patterns:
- In the first scenario, BTC experiences a decisive breakout beyond its previous ATH and quickly doubles in value within a few weeks. During this rapid ascent, altcoins may not see significant gains as attention remains focused on BTC. Altcoins might only start to recover once BTC takes a break from its breakout.
- Alternatively, BTC could reach its previous ATH but face rejection or consolidation at these levels for several weeks. During this period, altcoins may begin to recover while BTC consolidates. Subsequently, once BTC resumes its upward trajectory and doubles in value, altcoins could continue to gain momentum alongside it.
In the first scenario, altcoins typically start rallying several weeks after Bitcoin surpasses its previous all-time high (ATH). In the latter scenario, they begin to recover almost immediately after Bitcoin hits its previous ATH, he said. added.
VanEck: ETH will outperform BTC
In a recent interview with CryptoQuant, Matthew Seigel, VanEck’s head of digital assets, said that 2024 will be the year of Ethereum and other altcoins. So far in 2024, Ethereum remains an outperformer compared Bitcoin
the former having seen gains of 56% year-to-date, while BTC continues with gains of 50%.
“I think once the year is over, ETH will have outperformed BTC,” Seigel said. He further added that in the medium term, ETH is expected to outperform Bitcoin, especially during the mid-year period. Seigel added that he doesn’t think Ethereum will make Bitcoin the leading cryptocurrency, but it will surely surpass the largest crypto asset class. If so, rising Ethereum prices could trigger a new alt season through 2024.
In addition, the head of VanEck also spoke about the strong capital inflows to Bitcoin ETF. He added that the US government does not want banks and brokers to offer these assets to their customers. As a result, these banks and bank brokers have been slow to list these ETFs. However, some banking giants like Morgan Stanley are already taking this into consideration.
Interestingly, Seigel added that while the regulatory outlook could change over time, crypto investors should keep in mind that it is not a US asset class but rather an anti-dollar one.