Altcoins Show Strength Amid Bitcoin's Price Correction: A Prelude to Altseason?
Summary:
Following Bitcoin's recent price correction, alternative cryptocurrencies, particularly memecoins and AI-themed cryptocurrencies, have garnered attention as potential rivals, sparking debate on the start of an altcoin season. Altcoins' total market capitalization surpassed $1.1 trillion, indicating substantial investor interest in crypto assets beyond Bitcoin. Notable performers included Dogecoin and Shiba Inu, posting impressive gains over the past week. Although altcoins are currently outperforming Bitcoin, industry experts and analysts are divided regarding the precise onset of the altcoin season.
Following a sharp drop in price after reaching a record high at $69,324 on March 5, Bitcoin (BTC) has seen mixed performance against other altcoins. In recent times, memecoins and AI-themed cryptocurrencies have given BTC a run for its money provoking discussions about the possible arrival of an altcoin season.
According to TradingView, the unexpected spike in Bitcoin’s value over $69,000 on March 5 shot the whole crypto market value beyond the $2.5 trillion benchmark, reflecting the existing bullish trend in the market. As of the time of writing, the market value is still at a substantial $2.52 trillion as per data from CoinMarketCap.
On the day of this dramatic spike, the collective market capitalization of altcoins also went up significantly, surpassing $1.1 trillion. This figure indicates the overall worth of all cryptocurrencies, with the exclusion of Bitcoin.
The value of this metric has shown an impressive run, seeing an approximately 64% increase from $697 billion to $1.14 trillion between December 2022 and March 7th, 2023. This uptrend demonstrates an upsurge in investor enthusiasm for altcoins and highlights their impressive performance.
Data from CoinMarketCap indicates a significant rally in memecoins and AI over the past week, suggesting the commencement of altcoin season. Specifically, Dogecoin (DOGE) and Shiba Inu (SHIB) witnessed a rise of 20% and 130% respectively. Tokens such as Pepe (PEPE), Bonk (BONK), and dogwifhat (WIF) also experienced impressive gains during this timeframe.
Tokens within the AI ecosystem like Fetch.ai (FET), Synesis One (SNS), SingularityNET (AGIX), and Theta Network (THETA) also made compelling progress, whereas Bitcoin saw a moderate rise of just 8.5%.
As per the altcoin season index from Blockchain Center, 75% of the top 50 coins performing better than Bitcoin over the previous season (90 days) would signal an altcoin season. Currently, only 69% of these coins have surpassed Bitcoin’s performance in the last 90 days. However, a recent market report by K33 Research hinted at a forthcoming altcoin season soon.
K33 Research suggests similarities between Bitcoin's recent rally and the 2020 altcoin bull run, predicting that altcoins might soon start outperforming Bitcoin.
Independent analyst CrediBULL highlights possible future scenarios though. First, the possibility of Bitcoin soaring high quickly before the altcoins can catch up, and second, Bitcoin experiencing a pullback giving other altcoins a chance to shine.
On the other hand, Michaël van de Poppe, the founder and CEO of MN Trading Consultancy, has faith that the true altcoin season is yet to begin, whereas Cardano founder Charles Hoskinson suggests that the altcoin season might kick in once DOGE outstrips ADA in market capitalization.
Published At
3/7/2024 8:49:14 PM
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