Expectations for the “Altcoin season” have become even more obvious following the explosive Bitcoin and crypto bull run in 2021. This term refers to a period when the price of alternative tokens rises rapidly and is significantly better than the price of Bitcoin. Usually, this happens after the Bitcoin price launches new all-time highs, while money spins into the altcoins. However, this cycle is not the case. So what happened to the Altcoin season?
Altcoin season has not begun
Crypto analyst and expert Michaël Vande Poppe brought to the X (formerly Twitter) platform, sharing with his 790,000+ followers that the Altcoin season has not yet begun. This goes against the general belief that the altcoin season has arrived and is officially over. According to Van de Poppe, the Altcoin market is actually still in a bear market, but is about to end.
Analysts’ predictions are as Bitcoin prices remain above six numbers, but The altcoin market continues to struggle Close to its low point. Despite the bad market movement and a huge drop in positive sentiment, crypto analysts still believe the best is yet to come.
He predicts that the crypto bull market is about to begin, which will be bigger than ever since the bear market has been going on for a long time. In addition, he pointed out that this cycle is different from the previous cycle, and the next 1-3 years will also be different. Therefore, he predicts that many investors will miss it because of their impatientness.
Van de Poppe uses the chart above, created by Crypto analyst Techdev, which shows that the Altcoin market is at a critical point. It shows a period when Bitcoin prices rose while altcoins remained flat. However, this is usually calm before a storm comes, and Altcoin season tends to follow. If analysts are right, the Altcoin season will never begin and will remain in the future.
Market deviations hinder altcoins
As Michaël Vande Poppe mentioned, this cycle is completely different from the previous cycle and there are some reasons. The first is the emergence of institutions that buy heavy hitters such as Bitcoin (ETFS) from Michael Saylor’s strategy and heavy hitters such as Blackrock, such as through exchange-traded funds (ETFS). The natural consequence of this is that money is now only stuck in Bitcoin, rather than spinning to the last cycle or something like altcoins.
Similarly, the difference between the current cycle and the 2020-2021 cycle is the availability of free cash. After the 2020 co-lockdown, governments around the world paid billions of dollars to citizens to help them through the storm, and this “free cash” accidentally entered the market, triggering a huge Altcoin season.
Other factors already pointed out have contributed to this. Thousands of new coins flood the market every day, which makes liquidity sparse. Furthermore, wider macroeconomic factors such as Donald Trump’s tariff war have contributed greatly to maintaining market performance, while weaker altcoins have suffered even more.
Featured pictures from dall.e, charts from tradingview.com
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