According to a trader, altcoins may have to endure more pain before any profits materialize, and he predicts that the 'great reckoning of altcoins' may be imminent.
'It seems that the great reckoning of altcoins is finally approaching,' said Benjamin Cowen, founder of ITC Crypto, in a post on X on November 4.
He added that this correction will conclude in December or at the latest by the second week of January 2025.
'It's a long journey and many have given up along the way, but this process is always cyclical.'
This prediction is based on the deep price drop that the altcoin market experienced during the bear market of 2019. The altcoin market capitalization chart is currently showing a similar pattern.
Altcoins gradually recovered in 2020 before skyrocketing to new highs in 2021. According to the analyst, this scenario is likely to occur in 2025.
Source: Benjamin Cowen
In another post on X, he stated that altcoin/Bitcoin pairs have been continuously declining for three years, and the two most recent 'altseasons' occurred in the years following the halvings in 2017 and 2021.
Trader 'ardizor' predicts a similar outcome in a post on November 4, stating that altseason patterns from 2017 and 2021 'are repeating after three years'.
Source: ardizor
Meanwhile, investor 'Sensei' shared that 'the biggest altseason ever will begin in less than 10 days'.
Currently, Bitcoin's market dominance rate is at its highest since March 2021, nearly 60%, according to TradingView. This suggests that significant volatility for altcoins is unlikely to occur until BTC's market share drops below 50%.
Bitcoin's dominance rate over the past four years | Source: TradingView
The cryptocurrency market declined over the weekend, causing the total market capitalization to drop to $2.26 trillion at the time of writing.
The burden of those losses is weighing heavily on altcoins, with ETH and SOL down 11% since their highs on October 30. BNB has lost 8%, while Bitcoin has only dropped 5.8% since reaching a peak of $73,000 at the end of last month and continues to dominate the cryptocurrency market.