Altcoins
When will the altcoin season start? Analyst Michaël Van de Poppe’s prediction
Analysts are abuzz with speculation about the potential onset of a new season, fueled by a recent increase in the altcoin’s total market capitalization. Ethereum, which is leading this trend, has seen a notable increase with its price hovering around $3,891. Notably, crypto traders and analysts like Michaël van de Poppe have been closely watching altcoins following Ethereum’s impressive 27% gain over the past week.
According to data from TradingView, the total altcoin market cap currently stands at around $1.16 trillion, an increase of 15% over the past two weeks. This increase is approaching the resistance levels seen in mid-March, when the market cap surpassed $1.2 trillion.
Michaël van de Poppe, in his YouTube video analysislooks at the recent approval of the Ethereum ETF and its potential impact on altcoins in the current bull market.
Path to Altseason
Looking at historical trends, alt seasons tend to follow a distinct liquidity flow pattern. It usually takes place in several phases before reaching the market.
The Bitcoin Race: During this phase, a thriving bull market propels Bitcoin’s growth, potentially leading to new all-time highs. At the same time, Bitcoin’s dominance is beginning to decline, indicating a potential shift towards altcoins.
Ethereum’s turn: As Bitcoin corrects, Ethereum often appears as a favorite, posting impressive gains. Ethereum’s uptrend could coincide with a consolidation phase for Bitcoin.
Large-Cap Altcoins Shine:In this phase, investor attention and capital flow towards established altcoins, resulting in significant price appreciation.
Mid and low value frenzy:The final stage is seeing explosive growth and increased volatility in mid- and small-cap altcoins with promising growth potential.
When will we see Altcoin season?
Van de Poppe’s analysis suggests that the recent approval of the Ethereum ETF could catalyze a new season, aligning with the historical pattern seen in the cryptocurrency market. As Ethereum gains momentum and investor confidence increases, this could lead to broader appreciation in the altcoin market.
He dug deeper to reassess the importance of retail sentiment, which typically returns when altcoins start to move, especially when Ethereum shows strength. The Ethereum ETF approval is seen as a catalyst for a potential altcoin season. However, due to the listing process, the full impact may not be immediate and may take months to materialize.
Clear rules can create momentum
Beyond market dynamics, regulatory developments have had a positive influence on sentiment. Bipartisan support for the Fit21 bill and Trump’s embrace of cryptocurrency donations have contributed to a favorable market outlook. Additionally, Ethereum’s potential classification as a commodity represents another positive regulatory change.
Future prospects
The altcoin season could see a consolidation phase before gaining momentum. After the ETH ETF, several other altcoins are about to try their luck, including XRP, Litecoin, Solana and many others. The market seems more optimistic than ever about the adoption of ETFs.
Are you excited?