Is Altcoin Season Coming? Bitcoin Halving Hints at Potential Boom, Analyst Reveals

Is Altcoin Season Right Around the Corner?

Although the recent drop in Bitcoin’s price has caused several altcoins to plummet, with drops ranging from 30 to 70%, it seems that a glimmer of hope is about to shine through the darkness.

The recent Bitcoin halving in April is what the altcoin market needs to recover and break past its all-time highs.

Bitcoin Halving: A Gateway to Altcoin Prosperity?

Bitcoin typically undergoes a halving every four years, and this major event cuts the block reward for miners in half. This drop in supply has typically triggered a surge not only for Bitcoin but also for the altcoin market.

Expert advice from a crypto analyst elaborates that after every Bitcoin halving there is a pronounced potential for altcoins to rise. The analyst noted in particular:

I know when altcoin season is coming. And I’ll show you… “Halving” It all depends on that […] When the halving happens, after 1-1.5 years, BTC reaches ATH. And close to that, ETH and other altcoins explode.

Historically, this halving period has seen an explosion of attention for altcoins, driving their prices up due to concerns about Bitcoin’s scarcity afterward. event.

For example, during the previous Bitcoin halving on November 9, 2021, major altcoins including Ethereum (ETH) and Solana (SOL), Polkadot (DOT), Avalanche (AVAX) all recorded new all-time highs.

For context, ETH peaked at $4,800 on November 10th, SOL also came in with its new peak at $250 5 days earlier as revealed by Wise Advice, while DOT’s peak at $55 happened on the 4th of that month, and AVAX’s peak at $144 happened later in the month on the 21st.

Altcoins hit new highs after Bitcoin halving | Source: Wise Advice on X

How is the Halving Points Season going for Alts now?

As the Wise Advice article suggests, such patterns underscore a recurring theme: after the halving, money flows from Bitcoin to altcoins, significantly boosting their value. market positions.

Path to Altcoin Season. | Source: Crypto Wise

The analyst explained:

The more they buy, the higher the price goes. And this makes investors profitable. They sell some of it and send it to Ethereum and other tokens. The market cap of the latter is much smaller, so even $100 million inflow can make a huge change (a month before the ATH, Bitcoin MC was 2.5x bigger than Ethereum.) That’s why Solana and Polkadot ATH was 4-5 days faster. Then the money goes to even smaller Alts. And they start outperforming the big ones. The smaller they were, the bigger the growth was.

Notably, this shift is often reflected in Bitcoin’s dominance index, a metric that measures Bitcoin’s market capitalization relative to the total market capitalization of all cryptocurrenciesAs observed after the halving, a drop in this index signals growing interest in altcoins.

Bitcoin dominance The index is now at 54.60%, down slightly from 55% earlier this month, according to TradingView. It’s worth noting that the fact that the index is still somewhat elevated, as it’s still above 50%, suggests that the market still favors BTC.

Bitcoin (BTC) Domination on TradingView

However, the recent drop could be the first sign of an emerging altcoin season. Glassnode analysts make a similar analysis indicateconnecting current market circumstances to those of late 2020, when smaller stocks and riskier assets were booming, indicating an impending altcoin season.

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Featured image created with DALL-E, chart by TradingView

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