Altcoins
When will the altcoin season start? Analyst Michaël Van de Poppe’s prediction
Analysts are speculating about the potential start of altcoin season, fueled by a recent surge in the total altcoin market cap. Ethereum is leading the charge, with a notable increase in its price hovering around $3,891. Cryptocurrency traders and analysts like Michaël van de Poppe have been keeping a close eye on altcoins in particular after 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 Ethereum ETF approval 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 multiple phases before reaching the market.
The Bitcoin Race:During this phase, a thriving bull market is propelling Bitcoin’s growth, which could lead to new all-time highs. At the same time, Bitcoin’s dominance is starting to weaken, indicating a potential shift towards altcoins.
The Ethereum Tour:As Bitcoin corrects, Ethereum often emerges in the lead, posting impressive gains. Ethereum’s uptrend may coincide with a consolidation phase for Bitcoin.
Large-Cap Altcoins Shine:In this phase, investor attention and capital shifts towards established altcoins, leading to significant price appreciation.
Mid and low value frenzy:The final stage sees 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 Ethereum ETF approval could catalyze the altcoin 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 across the altcoin market.
He furthered his analysis to reassess the importance of retail sentiment, which typically returns when altcoins start to move, especially when Ethereum shows strength. The approval of the Ethereum ETF is seen as a catalyst for a potential altcoin season. However, due to the listing process, the full impact may not be immediate and could 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 may see a consolidation phase before it gains 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 ETF adoption.
Are you excited?