Altcoin Season Begins : Bitcoin Dominance Drops as Altcoin Market Eyes $1.4 Trillion
Vignesh S G2 Dec 20242 min read
A research report, released by Doctor Profit on X, predicts that the altcoin market will reach a market cap of $1.4 trillion by the first quarter of the year 2025. This indicates that exciting times are ahead for the cryptocurrency market, especially for the altcoin market. Let’s dive in to understand the scenario better.
Whale Accumulation: What’s Happening in the Crypto Market?
The report notes that whales have accumulated as many as $1.6 billion worth of Bitcoin in just the last 3 to 5 weeks. Highlighting the reluctance of retail traders to actively participate in the market, it states that retailers are panic-selling and are holding on to USDT. Though the report does not explain the panic-selling trend among retailers, it asserts that the trend has caused them to miss the growing momentum in the crypto market.
Ethereum’s Rising Potential
Highlighting the MVRV chart, the report suggests that Ethereum is currently undervalued. Underscoring the tremendous surge in institutional interest in ETH, especially post November 5, it notes that the second largest crypto by market cap is gaining strength. The report also points out that ETF inflows for ETH have exceeded those of Bitcoin.
Altcoin Season Is Here
The BTC Dominance ratio currently stands at 56.90%. On November 5, it stood at 60.55%. On November 9, it dropped to a low of 58.79%. Between November 10 and 13, it rose from 58.77% to 61.06%. After a small correction of 2.24%%, it peaked at 61.20% by November 20. Since November 21, it has dropped almost consistently.
As per the report, in April and November 2021, imbalances in the BTC-Bitcoin ratio preceded significant Bitcoin corrections.
Stressing that the current BTC-ALT ratio indicates altcoins are undervalued, the report forecasts that the altcoin market is entering a strong growth phase.
There are rumours that BlackRock and JPMorgan are preparing to launch XRP ETFs. Interestingly, these rumours also reinforce the altcoin season narrative.
Crypto Expert’s Bold Prediction for 2025
The crypto expert forecasts that the altcoin market will achieve the enviable market cap of $1.4 trillion by the first quarter of the year 2025. He also predicts the price of BTC soaring as high as $130K in the near future. Importantly, he notes that the ETF sector may play a huge role in the growth of both these markets.
In conclusion, Altcoins are poised for explosive growth as whales accumulate and institutional interest soars. With Bitcoin dominance falling, now is the time to pay attention to the market shifts ahead.
FAQs
- The altcoin market is predicted to reach a $1.4 trillion market cap by Q1 2025, driven by institutional interest and whale accumulation.
