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Altcoins Set to Rally Following Bitcoin’s Path
Several analysts are predicting a potential altcoin rally, or “altseason,” as Bitcoin experiences a period of decline in anticipation of its halving this April.
Market Projections and Analysis
Trader and analyst Rekt Capital suggests that Bitcoin’s current dip could be part of a final “retrace” or consolidation period before the halving on April 19. Bitcoin’s popularity is expected to influence the performance of the biggest altcoins by market capitalization.
Independent analyst Stockmoney Lizards identified bullish cup-and-handle patterns in the altcoin market’s capitalization metrics, implying a potential 10x bull run.
Market analysis by Santiment indicates an increase in retail traders buying the dollar-pegged stablecoin Tether, signaling potential readiness to buy the current dip in the market.
Furthermore, altcoin fan Sjuul (AltCryptoGems) believes that leading altcoins have the same funding rate as Bitcoin, suggesting a potential market correction and a “buy-the-dip opportunity.”
Altcoin Season Index
According to the Blockchain Association, the Altcoin Season Index currently sits at 59, meaning only 59% of the leading altcoins are outperforming Bitcoin. This falls below the 75% threshold typically associated with the onset of altseason.
The Impact of Bitcoin Halving
Historically, Bitcoin’s halving event has led to market-wide gains, driven by the constricted supply of new Bitcoins meeting consistent demand. The most recent halving, set for April 19, is anticipated to have significant effects on the crypto landscape, especially amidst increased regulatory scrutiny and the introduction of SEC-approved Bitcoin investment products.
The halving, a quadrennial event predetermined by Bitcoin’s code, will cut miners’ rewards in half, potentially causing miners to operate at a loss if Bitcoin’s price does not reach a certain threshold by the day of the halving.
Asset manager Fidelity’s analysis suggests that Bitcoin’s price needs to hit $80,000 by the day of the halving for mining revenue to remain consistent for all miners.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
