Altcoins
Bitcoin Dominance Echoes May 2019: Will Altcoin Season Be Delayed Again?
- Analysts have claimed that Alt season could be delayed due to a possible surge in BTC dominance.
- But other observers expected the altcoin season to be triggered by the launch of the US ETH spot ETF.
The altcoin market could hit an inflection point this week as the US spot market Ethereum [ETH] ETFs begin trading. As the largest altcoin, ETH’s performance could set the tone for the altcoin sector.
However, according to a renowned crypto analyst Benjamin CowenAltcoin season could be late due to potential surge Bitcoin [BTC] dominance ahead of a likely Fed rate cut in September.
According to Cowen, BTC’s current dominance mirrors the 2019 pattern, two months before the Fed cut rates and Alts failed to catch up.
“BTC also had an explosive move back then, and ALTs just couldn’t keep up. Similar candle today, potentially 2 months before the first rate cut.”
Source: X/Benjamin Cowen
Will Ethereum ETF Trigger Alt Season?
This could be bad news for cryptocurrency investors who were expecting relief from the altcoin market, which saw massive declines in June.
Additionally, the Altcoin Season Index indicator revealed that the alternate season was not yet here, as of press time.
Source: Blockchain Center
According to the indicator, the first half of 2024 has been a season for Bitcoin. And if Cowen’s projections are correct, this trend could continue.
However, Bitcoin dominance is just one way to gauge the altcoin season. According to some analysts, including the founders of Glassnode, the other is the ETH/BTC ratio.
ETH/BTC tracks the performance of ETH against BTC. According to the founders of Glassnode, who use the username Negentropic on X, the ratio has been tipped to be a scam and trigger altcoin season if the US ETH spot ETF starts trading.
The products are expected to be launched and begin shipping this week.
AMBCrypto’s assessment of the ETH/BTC ratio showed that it surged after the partial approval of the ETH ETF in May. However, the ratio had not yet broken its downward trend, as indicated by the descending channel (white).
Source: ETH/BTC, TradingView
It remains to be seen how ETH/BTC will react and whether this could trigger the altcoin season. Thus, BTC dominance and the ETH/BTC ratio were key fronts to track and assess the possible impact on altcoins.