Altcoins
Altcoins in free fall, increased dependence on bitcoin!
Friday May 10, 2024 ▪ 4 min reading ▪ by Mikaia A.
Altcoins are struggling to regain their highs as the crypto market shows no worrying signs. According to Nansen’s senior analyst, as long as Bitcoin does not break out of its current range, the situation for altcoins will remain unchanged. As such, the start of summer could be gloomy than ever for crypto traders.
Altcoins in search of their bottom
THE altcoin seasonor altseason, currently seems to be hampered by the price development of Bitcoin, because this asset is the most influential on the entire crypto market.
Bitcoin in trouble, altcoins are holding their breath. According to Cointelegraphsome analysts believe that the crypto market is ready to hit bottomperhaps signaling the start of a new bull cycle for altcoins.
The downturn in the altcoin market is accelerating. Rekt Capital, a renowned analyst, predicts a probable arrival at the lowest point within 3 weeks. “Altcoins are following the plan perfectly,” he says, noting that these assets have already reached their lowest level last Februarycoinciding with the Bitcoin halving.
Last month, the altcoin market capitalizationexcluding the top 10 cryptocurrencies, suffered a drop of more than 21%, reaching $265 billion. Although this is a significant decline, the altcoin market cap is still up over 24% year-to-date and over 167% year-over-year.
Altcoin market trend remains strongly linked to the evolution of Bitcoin, which is stagnating around $63,126. Blockchain advisor Alex Onufriychuk believes altcoins could hit rock bottom in Junedue to the lack of new liquidity from Bitcoin ETFs in the United States and Hong Kong.
Waiting for the Bitcoin upheaval!
According to Aurélie Barthere, analyst at Nansen, a new bull cycle for altcoins will mainly depend on a surge in Bitcoin to unprecedented heights. Altcoins, these highly volatile digital currencies, shine best when optimism prevails. However, since mid-March, the cryptocurrency market has shown a less euphoric feeling.
While BTC price holds around the 20-day exponential moving average, altcoins are experiencing increased volatility. A breakout above this average and a clear resurgence of the crypto star’s rise is necessary for altcoins to regain the lead.
Even though analysts predict a healthy period of consolidation since the halving of BTC miner rewards, it is clear that a significant Bitcoin movement will be triggered a new dynamic for alternative cryptos.
For Alex Onufriychuk of Qubic Labs, a drop in altcoins in June will not be enough to trigger a bullish cycle. More investment, both private and institutional, will be required, as well as a favorable regulatory environment.
Despite promising buy signals on the monthly chart and a US M2 money supply that has become positive again since November 2023, altcoins remain dependent on a strong Bitcoin to start a new bullish cycle.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.