Altcoins
Altcoins in free fall, growing dependence on bitcoin!
Fri 10 May 2024 ▪ 4 minute read ▪ by Mikaia A.
Altcoins are struggling to regain their highs as the cryptocurrency market shows no worrying signs. According to Nansen’s lead analyst, as long as Bitcoin does not break out of its current range, the situation for altcoins will remain unchanged. Therefore, the start of summer may be bleaker than ever for cryptocurrency traders.
Altcoins looking for the bottom
THE altcoin seasonor altseason, currently seems hindered by the evolution of the price of Bitcoin, since this asset is the most influential on the entire cryptocurrency market.
Bitcoin in trouble, altcoins are holding their breath. Second Cointelegraphsome analysts believe so the cryptocurrency market is ready to hit rock 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,” she says, noting that these assets have already achieved their goal lowest level last Februarycoinciding with the Bitcoin halving.
Last month, the altcoin market capitalizationexcluding the top 10 cryptocurrencies, it has undergone a drop of over 21%, reaching $265 billion. While this is a significant drop, altcoin market capitalization is still up more than 24% year-to-date and more than 167% year-over-year.
The altcoin market trend remains strongly linked to the evolution of Bitcoin, which is stagnant around $63,126. Alex Onufriychuk, a blockchain consultant, believes altcoins could do this they hit bottom in Junedue to the lack of new liquidity from Bitcoin ETFs in the US and Hong Kong.
Waiting for the Bitcoin Shock!
According to Aurelie Barthere, an analyst at Nansen, a new bull cycle for altcoins will mainly depend on Bitcoin’s surge to unprecedented highs. Altcoins, these highly volatile digital currencies, shine especially when optimism prevails. However, since mid-March, the cryptocurrency market has shown a less euphoric feeling.
While BTC price is holding around the 20-day exponential moving average, altcoins are experiencing increased volatility. A breakthrough above this average and a clear resumption of the rise of the cryptocurrency star is necessary for altcoins to regain the lead.
Even if analysts predict it a healthy period of consolidation from the halving of BTC miners’ rewards, it is clear that it will trigger a significant movement in Bitcoin a new dynamic for alternative cryptocurrencies.
For Alex Onufriychuk of Qubic Labs, a drop in altcoins in June will not be enough to trigger a bull cycle. Greater investments, both private and institutional, as well as a favorable regulatory environment will be needed.
Despite promising buy signals on the monthly chart and the US M2 money supply turning positive since November 2023, altcoins remain dependent on a strong Bitcoin to initiate a new bull cycle.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.