Altcoins
Bitcoin’s Dominance Echoes May 2019: Will Altcoin Season Be Late Again?
- Analysts have said that the Alt season could slow down due to a possible surge in BTC dominance.
- But other observers expected the alternative season to be triggered by the launch of the ETH spot ETF in the United States.
The altcoin market could reach a turning point this week, with the US spot price Ethereal [ETH] ETF starts trading. As the largest altcoin, ETH’s performance could set the pace for the altcoin space.
However, according to a renowned cryptocurrency analyst Benjamin CowenAltcoin season could slow down due to potential surge Bitcoin [BTC] dominance ahead of a likely rate cut by the Fed in September.
According to Cowen, BTC’s current dominance mirrors the trend in 2019, two months before the Fed cut rates and altcoins failed to recover.
‘BTC also had an explosive move back then, and ALTs couldn’t keep up. Similar candle today, potentially 2 months before 1st rate cut.’
Source: X/Benjamin Cowen
Will Ethereum ETF Trigger Altcoin Season?
This could be bad news for cryptocurrency investors who were expecting a recovery from the altcoin market, which saw massive declines in June.
Also, the Altcoin Season Index indicator revealed that, at the time of going to press, the alternate season had not yet begun.
Source: Blockchain Center
According to the indicator, the first half of 2024 was a Bitcoin season. And if Cowen’s projections are correct, this pattern could continue.
However, BTC 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, it was thought that the report could be a scam and trigger the altcoin season if the US spot ETH ETF started trading.
The product launch and marketing are scheduled for this week.
AMBCrypto’s assessment of the ETH/BTC ratio showed that it increased after the partial approval of the ETH ETF in May. However, the ratio was yet to break its downtrend, as indicated by the descending channel (white).
Source: ETH/BTC, TradingView
It remains to be seen how ETH/BTC will react and whether it could trigger the altcoin season. Hence, BTC dominance and ETH/BTC ratio have been key fronts to track and assess the possible impact on altcoins.