Analyst says ‘Alt Season’ is here; here’s what this could mean for Bitcoin and Ethereum
Two months ago when Bitcoin began a rally in January, the flagship crypto reached new ATHs and remained steady over the $30,000 range for a long time. At the time, data from Longhash revealed that in a week’s time, 92% of crypto tokens had “outperformed Bitcoin.” The phenomena marked the beginning of an ‘alt season’ with many experts predicting that alts such Ether and ADA could continue to reign supreme.
After gaining much mainstream attention and surging by trillion dollars in market cap, Bitcoin quickly outperformed the alts. However, trader and analyst ‘Filbfilb,’ (who is co-founder of Decentrader) has now said that a second alt season has arrived. The analyst published his data in a tweet on 29 March that showed:
As seen earlier in January, the current “alt season” begins amid yet another massive Bitcoin price correction. Over the past two weeks, Bitcoin has shed roughly over $10,000 after its record-breaking ATH of more than $61,000. Moreover, btc dominance has declined and is currently at 59.39%, as of 29 March. This would be the lowest in the past three months. Meanwhile, the total market capitalization of altcoins has surged close to 750 billion.
At the beginning of 2021, when Ether was up 22% against BTC, many said that the largest alt, in particular, had the potential to compete with Bitcoin.
A similar narrative has now emerged alongside the current altcoin rally, especially after Ethereum began to gain mainstream adoption.
China-based tech company Meitu decided to purchase 15,000 units of Ether earlier. More recently, payments network giant Visa decided to settle transactions in USDC over the Ethereum network today. Such developments could nudge an already growing retail interest toward Ether.
The same can be said for Cardano’s ADA after it had recently flipped several other alts to rank as the third-largest crypto by market capitalization. The coin was soon replaced by BNB which appreciated by 2131% over the year – establishing itself as another rising alt. Meanwhile, crypto traders remain bullish on alts and especially Ether with analyst Scott Melker stating:
Altcoins look great.
— The Wolf Of All Streets (@scottmelker) March 29, 2021
In the past, the likes of Fundstrat’s David Grider predicted that Ether could well be on its way to reaching $10,500. However, as Longhash previously noted, “Ether’s market cap” or any other alt for that matter “could quadruple and it would still be behind Bitcoin.”
At press time, BTC was trading at $57,738.62 with a 5% hike in price in the past 24 hours.