Altcoins
Altcoin Season on Pause? What Does Bitcoin’s Latest Drop Mean for Altcoin Prices
- The prospect of an altcoin season continues to decline as TOTAL2 market cap remains elusive for BTC.
- Although some analysts see a buying opportunity, the market trend suggests that this opportunity is still far from being realized.
For months, analysts have been predicting that altcoin season is near. But all this time, these predictions have not come to fruition. Once again, the same speculations are circulating after Bitcoin [BTC] The price fell to its lowest level in two months.
Altcoin season, commonly referred to as alt season, refers to a cycle in which other cryptocurrencies outperform BTC. To validate this market phase, at least 75% of the top 50 altcoins by market cap must outperform the number one cryptocurrency.
But this cycle, a lot of these cryptocurrencies have had difficulty matching Bitcoin Dominance. In most cases, Bitcoin has been the driving force behind the rise and fall of the broader cryptocurrency market.
Will Altcoins Ever Catch Up With Bitcoin?
A technical indicator that says “yes” or “no” to the season is the TOTAL2 chart. This chart measures the total market capitalization of all other cryptocurrencies in the market, except BTC.
When this indicator increases, it lends credence to the possibility of an alternative season approaching. But a notable decrease suggests otherwise.
According to AMBCrypto analysisAt the time of publication, TOTAL2’s market cap was $960.23 billion. Over the last six months, that’s a 25.63% increase. However, the last 30 days up to the last 24 hours have been torrid for it.
Source: TradingView
In particular, the value has fallen by 15.08% over the past month and by 4.13% over the past seven days. Given the current situation, it would be safe to say that altcoins may not see a respite anytime soon.
However, if the value starts to increase and approaches a market capitalization of $1 trillion, the possibility of an overall price increase could increase.
Memes are the leaders, according to some analysts
In the meantime, several analysts have commented on the possible performance of these coins. For example, Murad, an analyst at X, issued the opinion that memecoins will lead the surge whether altcoin season arrives or not.
In his message, Murad noted that,
“If an alt season happens, memes will outperform alts. If an alt season doesn’t happen, memes will outperform alts.”
Given how cryptos have performed this year, there’s no denying that his opinion might be valid. That’s because meme coins like Grandpa [PEPE], Bonk [BONK], Floki [FLOKI]and many others have outperformed many other altcoins.
If this remains the case when the market rebounds, then Murad’s position will be validated. Another pseudonymous trader, Mister Crypto, did not specify his preference.
However, on July 1, he mentioned that the fall in prices offered a rare buying opportunity. He wrote:
“To be honest, many Altcoin charts look like good buys right now. Most of them will easily go up 30x.”
ETH’s role has not yet been played
While these predictions are subject to market conditions, others have looked at the ETH/BTC chart to confirm their bias. ETH/BTC Chart Shows Whether Bitcoin Is Outperforming Ethereum [ETH] or it’s the other way around.
Historically, when ETH beats BTC at its game, it gives altcoins the opportunity to outperform the king coin. But if BTC is in the lead, altcoin season becomes hard to find.
At press time, AMBCrypto observed that the ETH/BTC chart had dropped to 0.054. This is a 1.62% drop in the last seven days. A few days ago, the price was at 0.056.
Source: TradingView
But the recent value means that 1 ETH can only buy 0.054 BTC. If this improves, the altcoin season will improve. Otherwise, the market phase may be delayed.
In the meantime, the market as a whole could wait for the spot Ethereum ETFs to start trading before getting confirmation of an altcoin season.
Realistic or not, here it is ETH Market Cap in BTC Terms
Although the event was originally scheduled to begin on July 2, expectations are now shifting to the 8th.
If ETH follows Bitcoin’s performance after its approval in January, it would be a good thing for altcoins. If not, altcoin season could still be a long way off.