Meme Coins Fizzle, Bitcoin Soars, Investors Shift Gears: Is Altcoin Season 2024 Here?
Qadir AK12 Mar 20242 min read
Bitcoin (BTC) has long been the reigning champ, running the digital market. As Bitcoin approaches $72,000 with a 4.70% surge, a subtle shift is buzzing in the air – the Altcoin Season.
While Bitcoin claims its throne at $71,808.47, the spotlight is turning towards the underdogs – the “altcoins.” In the last 24 hours, Bitcoin’s trading volume spiked by a whopping 76.91%, hitting $64.61 billion, and the crypto market cap reached a formidable $1.41 trillion.
Let’s dive into Altcoin Season and explore the rising stars here.
Altcoins in Action!
As meme coins take a backseat, altcoins like Ethereum (ETH), XRP, Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) are gaining momentum. Investors are reshuffling the crypto deck, seeking speculative assets beyond Bitcoin.
As Bitcoin’s influence fades on meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), altcoins are taking center stage. Ethereum has crossed the crucial $4,000 milestone, joined by Ripple (XRP), Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK).
Litecoin (LTC), Stellar (XLM), and Near Protocol (NEAR) are also making gains, driven by anticipation for the Nvidia 2024 GTC Conference. Market observers, like @CryptoTony_, foresee a shift from meme coins to promising altcoins.
Also Read: Raoul Pal Lists Top Altcoins To Stack Before April
The Wealth Effect
Matt Hougan, CIO of Bitwise, explains the classic “wealth effect” at play. Crypto investors, pleased with Bitcoin profits, are now exploring greater returns in altcoins. Wealth is shifting from Bitcoin to altcoins, making them more popular. Historically, once Bitcoin breaks its all-time high (ATH), Altcoin Season follows within 2-3 weeks. The Total Altcoin Marketcap has surpassed $1 trillion, eyeing the ATH at $1.7 trillion.
This Altcoin Season might differ due to the unique dynamics of the current bull market. Santiment’s insights reveal a shift, with Bitcoin reaching new highs and significant capital inflows through Spot Bitcoin ETFs. Altcoins gain attention amidst a growing total crypto market capitalization and trading volume.
Mega Breakout Scenario
Bitcoin’s rally, fueled by institutional investment after Spot BTC ETF approval in January, could extend the altcoin season, altering market dynamics.
In the dance between altcoins and Bitcoin, if BTC breaks its prior ATH and swiftly doubles, a mega breakout is expected. Altcoins might step back briefly during this surge, waiting for their turn in the spotlight when Bitcoin takes a breather.
What’s for sure? Altcoins are set to shine brighter than ever before.
