Altcoins Struggling as Bitcoin Continues to Surge
While Bitcoin is reaching new heights, altcoins are struggling to keep up. On February 28, Bitcoin came close to $64,000, marking a 25-month high and bringing it within 11% of its peak price in November 2021. However, most altcoins remain more than 50% below their all-time highs. Additionally, Bitcoin’s dominance in the market is at a two-year high of 54.6%, indicating that an altseason is unlikely until this dominance decreases.
Hope for an Altseason
Despite the current state of altcoins, some traders believe that there is hope for an altseason. Altcoin trader ‘CryptoAmsterdam’ analyzed the money flow from Bitcoin to high-cap altcoins and then to low-cap altcoins based on previous cycles. According to him, all assets move in similar cyclical patterns, and altcoins could experience significant surges during an altseason. He even provided a list of nine altcoins that he believes are ready to make big moves:
- Shiba Inu (SHIB)
- Ethereum (ETH)
- Solana (SOL)
- Cardano (ADA)
- Polygon (MATIC)
- PancakeSwap (CAKE)
- Avalanche (AVAX)
- Terra (LUNA)
- Chainlink (LINK)
Shiba Inu Outperforming BTC
Among these altcoins, Shiba Inu stands out as it has been outperforming Bitcoin in the crypto top twenty. Shiba Inu is a meme-based cryptocurrency that gained popularity after the success of Dogecoin. It has seen significant price surges and has garnered a strong community following. While investing in meme coins comes with its own risks, some traders believe that Shiba Inu has the potential for further growth.
ETH, SOL, ADA, and More
Other altcoins on the list include Ethereum (ETH), Solana (SOL), Cardano (ADA), Polygon (MATIC), PancakeSwap (CAKE), Avalanche (AVAX), Terra (LUNA), and Chainlink (LINK). These altcoins are well-known in the crypto space and have shown promising performance in the past. Traders speculate that these coins could experience significant price increases during an altseason.
Bitcoin’s Dominance
One of the key factors influencing the possibility of an altseason is Bitcoin’s dominance in the market. Currently, Bitcoin holds a 54.6% share of the total cryptocurrency market cap. This means that Bitcoin’s performance strongly influences the overall market sentiment and can overshadow the performance of altcoins. Until Bitcoin’s dominance decreases, it may be challenging for altcoins to gain significant traction.
The Importance of Altcoin Research
While there is hope for an altseason, it is crucial for investors to conduct thorough research before investing in any altcoin. Here are some factors to consider:
- Market Cap: The market cap indicates the size and value of a cryptocurrency. Higher market cap coins tend to be more stable and less volatile compared to low-cap coins.
- Use Case: Understanding the use case and purpose of an altcoin can help determine its long-term potential and adoption.
- Development Team: Evaluating the team behind an altcoin is essential. A strong and experienced team can contribute to the success of a project.
- Community Support: The size and engagement of a coin’s community can impact its price movements and overall market sentiment.
- Price History: Analyzing an altcoin’s price history can provide insights into its volatility and potential for future growth.
Hot Take: Altseason on the Horizon?
As Bitcoin continues to dominate the market, altcoins are struggling to catch up. However, there is hope for an altseason as traders anticipate significant price increases in certain altcoins. It is important for investors to conduct thorough research and consider various factors before investing in altcoins. While altseason may not be imminent, keeping an eye on promising projects could lead to potential gains in the future.
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