Altcoins
When will the Altcoin season start? Analyst Michaël Van de Poppe’s prediction
Analysts are abuzz with speculation about the potential onset of a new season, fueled by a recent increase in the altcoin’s total market capitalization. Ethereum, which is leading this trend, has seen a notable increase with its price hovering around $3,891. Notably, crypto traders and analysts like Michaël van de Poppe have been closely watching altcoins following Ethereum’s impressive 27% gain over the past week.
According to TradingView data, the total market capitalization of altcoins currently stands at around $1.16 trillion, an increase of 15% over the past two weeks. This rise is approaching resistance levels seen in mid-March, when market capitalization exceeded $1.2 trillion.
Michaël van de Poppe, in his YouTube video analysislooks at the recent approval of the Ethereum ETF and its potential impact on altcoins in the current bull market.
Path to Altseason
Looking at historical trends, alternate seasons tend to follow a distinct liquidity flow pattern. It usually takes place in several phases before reaching the market.
The Bitcoin Race: During this phase, a thriving bull market propels Bitcoin’s growth, potentially leading to new all-time highs. At the same time, Bitcoin’s dominance is beginning to decline, indicating a potential shift towards altcoins.
Ethereum’s turn: As Bitcoin corrects, Ethereum often appears as a favorite, posting impressive gains. Ethereum’s uptrend could coincide with a consolidation phase for Bitcoin.
Large-Cap Altcoins Shine: In this phase, investor attention and capital flow to established altcoins, resulting in significant price appreciation.
Mid and low cap frenzy: The latest stage is witnessing explosive growth and increased volatility of mid- and small-cap altcoins with promising growth potential.
When will we see Altcoin season?
Van de Poppe’s analysis suggests that the recent approval of the Ethereum ETF could catalyze a new 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 in the altcoin market.
He dug deeper to reassess the importance of retail confidence, which typically comes up when altcoins start moving, especially when Ethereum shows strength. The approval of the Ethereum ETF is seen as a catalyst for a possible altcoin season. However, due to the listing process, the full impact may not be immediate and may take months to materialize.
Clear rules can create momentum
Beyond market dynamics, regulatory developments have positively influenced sentiment. Bipartisan support for the Fit21 bill and Trump’s acceptance of cryptocurrency donations contributed to a favorable market outlook. Additionally, the potential classification of Ethereum as a commodity represents another positive regulatory change.
Future prospects
The other season could experience a consolidation phase before taking off in full swing. After ETH ETF, several other altcoins are about to try their luck, including XRP, Litecoin, Solana and many others. The market seems optimistic about ETF adoption like never before.
Are you excited?