Altcoin Market Predicted to Bottom in June, Potential Bull Run on Horizon
Summary:
Analysts predict that the altcoin market could hit its local bottom in June, potentially marking the beginning of the next altcoin bull run. Despite a 21% drop in the past month, the altcoin market cap is still up 24% YTD and 167% over the past year. A bull run may require a price breakout for Bitcoin, along with increased retail and institutional investment and positive regulatory changes. Meanwhile, a rise in the M2 money supply may signal investors hedging against inflation, potentially contributing to a boost in altcoin prices.
Analysts predict that the cryptocurrency market, excluding Bitcoin (BTC), may likely hit its local low point in June, potentially kick-starting the subsequent altcoin bull run. Rekt Capital, a prominent crypto market analyst, has deduced from historical chart trends that altcoins may begin to stabilize and hit their price lows in the early part of June. The altcoin market has been noticeably volatile during the past month, with the market cap of the non-top 10 coins witnessing a reduction of over 21%, amounting to $265 billion.
Still, despite the slide, the altcoin market cap has managed to remain profitable by over 24% on a year-to-date basis, and an impressive 167% over the last year. According to Alex Onufriychuk, a blockchain advisor and coach at QUBIC Labs Accelerator, altcoins can likely hit their local low around June as market sentiment and Bitcoin prices stay low due to the reduction in input from U.S. spot Bitcoin exchange-traded funds (ETFs).
However, a jumpstart in the altcoin market, leading to a bull run would demand for Bitcoin prices to advance, as Aurelie Barthere, principal research analyst at Nansen emphasizes, stating that a bullish sentiment is essential for the success of altcoins. Bitcoin has been recording lower highs since mid-March, but this may be indicative of a healthy period of consolidation, following the last halving.
QUBIC Labs' Onufriychuk opines that hitting a local low in June does not directly translate to an altcoin market upto the bull run. For a notable shift, more substantial changes, including increased retail and institutional investment and positive regulatory developments are required.
As per moving average indicators, about 10 out of 12 suggest to buy top altcoins, like Ether (ETH), which has experienced struggles recently. Additionally, a rise in altcoin prices may also occur due to an increase in the M2 money supply, for the first time year-over-year since November, indicating that investors may seek to hedge against inflation or find alternative investments. The increase in money supply could potentially find its way to altcoins and memecoins, contributing to the onset of "altszn.
Published At
5/10/2024 8:25:00 AM
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