Bitcoin Rally Triggers Speculation of an Incoming Altseason
Earlier today, the Bitcoin (BTC) price rallied all the way to $68,800 just inches away from hitting its all-time high levels. The strong inflows into the newly launched Bitcoin ETFs have triggered an unprecedented rally in Bitcoin and the broader crypto market. However, some top market analysts believe that investors could start rotating funds from Bitcoin to altcoins thereby kicking-in the new altseason in the market.
Is a New Altseason About to Begin?
In the past month alone, the altcoin market cap has surged by an impressive 50%, from $800 billion to now reaching $1.2 trillion. While meme coins have been major contributors to this growth, top altcoins like Ethereum (ETH), Cardano (ADA), and Polygon (MATIC) are yet to participate in the mega rally.
To shed light on the topic of altseason, CrediBuLL Crypto, a popular analyst in the cryptocurrency sphere, offers insights into potential scenarios:
- Scenario 1: BTC experiences a decisive breakout past its previous all-time high (ATH) and swiftly doubles in value over a few weeks. During this rapid ascent, altcoins may not see significant gains as attention remains focused on BTC. Altcoins may only begin to rally once BTC pauses following its breakout.
- Scenario 2: BTC reaches its prior ATH but faces rejection or consolidation at these levels for several weeks. During this period, altcoins could start rallying while BTC consolidates. Subsequently, once BTC resumes its upward trajectory and doubles in value, altcoins may continue to gain momentum alongside it.
In either scenario, altcoins typically start rallying collectively several weeks after Bitcoin surpasses its previous all-time high (ATH) or immediately after Bitcoin touches its prior ATH.
VanEck: Ethereum Poised to Outperform Bitcoin
In a recent interview with CryptoQuant, VanEck’s Head of Digital Assets Matthew Seigel stated that 2024 could be the year for Ethereum and other altcoins. So far in 2024, Ethereum has outperformed Bitcoin, with gains of 56% compared to BTC’s 50%.
Seigel believes that by the end of the year, ETH will have outperformed BTC. He also predicts that in the medium term, ETH will continue to outperform Bitcoin, especially in the halving year. While Seigel doesn’t expect Ethereum to surpass Bitcoin as the top cryptocurrency, he believes it will outperform BTC and trigger a new altseason in 2024.
Seigel also mentioned the strong inflows into Bitcoin ETFs and pointed out that some banking giants like Morgan Stanley are considering listing these ETFs despite regulatory challenges. He emphasized that crypto investors should remember that cryptocurrencies are not just a US asset class but rather anti-dollar assets.
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