Altcoin Season Is Here? Bitcoin Halving Points to Potential Boom, Analyst Says

Is Altcoin Season Here?

While the recent Bitcoin price crash has sent several Altcoins into a tailspin, with drops ranging from 30% to 70%, it seems like there is a glimmer of hope waiting to shine through the darkness.

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

Bitcoin Halving: A Gateway to Altcoin Prosperity?

Bitcoin typically goes through a halving every four years, and this major event halves the block reward for miners. This drop in supply has typically triggered a bullish rally not only for Bitcoin but also for the altcoin market.

Wise advice from cryptocurrency analyst elaborate that after every Bitcoin halving, there is a pronounced potential for the rise of altcoins. The analyst noted in particular:

I Know When Altcoin Season Is Coming. And I’ll Show You… ‘Halving’ It All Depends On This […] When the halving occurs, after 1-1.5 years, the all-time high of BTC is reached and, close to that, the boom of ETH and other altcoins occurs.

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

For example, in 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 hit its new high at $250 5 days earlier, as revealed by Wise Advice, while DOT’s peak at $55 occurred on the 4th of that month, and AVAX’s peak at $144 occurred later that month, on the 21st.

Altcoins are hitting all-time highs after Bitcoin halving. | Source: Wise Advice on X

How does the halving indicate alt season now?

As Wise Advice’s post suggests, such patterns underscore a recurring theme: after the halving, money flows from Bitcoin into altcoins, significantly supporting their market positions.

Path to Altcoin Season | Source: Crypto wise

The analyst explained:

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

In particular, this shift is often reflected in the Bitcoin Dominance Index, a metric that measures the market capitalization of Bitcoin relative to the total market capitalization of all cryptocurrenciesAs observed after the halving, a decline in this index signals growing interest in altcoins.

Bitcoin dominance is now at 54.60%, a slight decline from over 55% earlier this month, according to TradingView. In particular, the fact that the index is still a bit high, as it still stands above 50%, suggests that the market still favors BTC.

Bitcoin (BTC) Dominance on Trading View

However, the recent drop could be the first sign of an emerging altcoin season. Analysts at Glassnode make a similar claim pointconnecting current market circumstances to those of late 2020, when smaller stocks and riskier assets boomed, signaling an impending altcoin season.

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Featured image created with DALL-E, chart from TradingView

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