Altcoins
Is Altcoin Season on Hold? What Bitcoin’s Latest Crash Means for Altcoin Prices
- The outlook for an altcoin season continues to decline as TOTAL2’s market cap remains far from BTC.
- While some analysts see a buying opportunity, market trends suggest that such an opportunity is far away.
For months, analysts have been claiming that altcoin season is near. But in all those periods, those predictions have failed to come true. Again, the same speculation is circulating after Bitcoin [BTC] the price fell to its lowest level in the last two months.
Altcoin season, commonly called alt season, refers to a cycle in which other cryptocurrencies outperform BTC. To validate this market phase, at least 75% of the top 50 alts by market cap must outperform the number one cryptocurrency.
But in this cycle, many of these cryptocurrencies have he fought to match Bitcoin’s Dominance. In most cases, Bitcoin has led the rise and fall of the broader cryptocurrency market.
Will Alternatives Catch Bitcoin Next?
A technical indicator that says “yes” or “no” to the season is the TOTAL2 chart. This chart measures the total market capitalization of all other cryptocurrencies on the market, except BTC.
When this indicator jumps, it gives credence to the possibility of an upcoming alt season. But a significant decline suggests otherwise.
According to AMBCrypto analysesTOTAL2’s market cap was $960.23 billion at press time. Over the past six months, it has been an increase of 25.63%. However, the past 30 days up to the past 24 hours have been scorching hot for it.
Source: TradingView
In particular, the value has dropped by 15.08% in the last month and by 4.13% in the last seven days. Considering the current situation, it might be reasonable to say that altcoins may not see any respite any time soon.
However, if the value starts to rise and approaches a market cap of $1 trillion, then the possibility of a general price increase could increase.
According to some analysts, memes are what drive
Meanwhile, several analysts have commented on the possible performance of these coins. For example, Murad, an analyst at X, opined that memecoins will lead the wave, regardless of whether altcoin season arrives or not.
In his post, Murad noted that,
“If an Alt season happens, Memes will outnumber Alts. If an Alt season doesn’t happen, Memes will outnumber Alts.”
From the performance of cryptocurrencies this year, there is no denying that his opinion may be valid. This is because meme coins like Pepper [PEPE], To beat [BONK], Floki [FLOKI]and a number of others have performed better than many other altcoins.
If this remains the case when the market rebounds, then Murad’s position would be validated. Another pseudonymous trader, Mister Crypto, did not state his preference.
However, on July 1, he mentioned that the price collapse offered a rare buying opportunity. He wrote,
“To be honest, many altcoin charts look like great buys right now. Most of them will easily go up 30x.”
The role of ETH did not come into play
While these predictions are subject to market conditions, others have looked at the ETH/BTC chart to confirm their bias. The ETH/BTC chart shows whether Bitcoin is outperforming Ethereal [ETH] or it’s the opposite.
Historically, when ETH beats BTC at its own game, it gives altcoins the chance to outperform the mainstream coin. But if BTC is ahead, altcoin season becomes hard to find.
At press time, AMBCrypto noted that the ETH/BTC chart had dropped to 0.054. This is a 1.62% decline over the past seven days. A few days ago, the price was 0.056.
Source: TradingView
But the recent value means that 1 ETH can only buy 0.054 BTC. If this improves, the altcoin season will improve. If not, the market phase could be delayed.
In the meantime, the broader market may wait for the Ethereum ETF Spots to start trading before receiving confirmation of an altcoin season.
Realistic or not, here it is ETH Market Cap in terms of BTC
While the event was initially expected to begin on July 2, expectations are now shifting toward July 8.
If ETH mirrors Bitcoin’s performance after its own approval in January, it would be great for altcoins. If not, altcoin season may be a long way off.