Altcoin Season May Take Longer to Arrive, Says Bloomberg Analyst
Former Bloomberg Intelligence analyst Jamie Coutts believes that the arrival of an altcoin season may be delayed compared to previous market cycles. While many altcoins are experiencing breakouts, Bitcoin still dominates the crypto market in terms of total market capitalization.
Coutts suggests that Bitcoin’s dominance could last longer this time if spot market Bitcoin exchange-traded funds (ETFs) are approved. This is because the approval of these ETFs would result in a significant inflow of capital into Bitcoin, further strengthening its dominance.
When Alt Season Arrives, Some Projects Will Stand Out
Coutts also predicts that when the alt season eventually arrives, certain projects will emerge as stronger contenders due to the expanding adoption of their blockchain technology. He emphasizes the importance of product market fit and growing adoption for alt-L1s (layer-1s), L2s (layer-2s), and DApps (decentralized applications).
Potential Correction for Bitcoin
The analyst warns that Bitcoin could experience a sudden correction based on the net unrealized profit/loss (NUPL) metric. This metric calculates Bitcoin investors’ unrealized profit or loss divided by the BTC market cap. Coutts explains that as Bitcoin enters the belief/denial zone, 25%-30% pullbacks may become more common.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $43,383, representing a 3.1% increase in the past 24 hours.
Hot Take: Altcoin Season Delayed, But Promising Projects Await
Bloomberg analyst Jamie Coutts suggests that an altcoin season may take longer to materialize in this market cycle compared to previous cycles. Despite breakouts in many altcoins, Bitcoin continues to dominate the crypto market. However, when the alt season eventually arrives, projects with strong adoption and product market fit will stand out. Coutts also warns of a potential correction for Bitcoin based on the NUPL metric. As Bitcoin enters the belief/denial zone, pullbacks of 25%-30% may become more frequent. Nevertheless, Bitcoin is currently trading at $43,383, showing a 3.1% increase in the past 24 hours.
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