What is the altseason and when does it come?
Alt-season is the name given to the situation on the market when altcoins start to grow in capitalization and price significantly more than bitcoin, explained Nikita Zuborev, senior analyst at Bestchange.ru. He called a long and significant drop in the bitcoin dominance index an indirect sign of the beginning of the alt-season.
“The altcoin season, in its usual form, will not begin until Bitcoin’s growth momentum slows down, and the influx of funds into the crypto market continues to increase the capitalization of other projects.”
BitRiver financial analyst Vladislav Antonov added that the sign of the onset of the altseason could be an increase in trading volumes on crypto exchanges, more active listings of altcoins and an increase in the amount of news about altcoins. The specialist named several conditions under which the altseason could begin:
● Bitcoin price stabilization: If BTC volatility decreases, investors may start looking for higher returns in altcoins;
● Improving sentiment: concerns about increased BTC supply from the German government and Mt. Gox have abated;
● Altcoins with strong fundamentals and innovative solutions may attract more attention;
● Fall of the dollar index amid expectations of a rate cut by the US Federal Reserve in September;
● Growth of US stock indices;
● Approval and launch of Ethereum-based spot ETFs.
According to Zuborev, the altseason may begin in the foreseeable future if the US SEC approves exchange-traded funds (ETF) based on Ethereum, and these funds begin to massively buy up "ether", which simply will not reach the free market, contributing to the price growth. The expert also attributed the potential effect of the approval of an ETF based on Solana. In this case, the "altseason" may formally begin, because the market will continue to grow due to the increase in the capitalization of altcoins.
Potentially more profit in case of the start of the altseason can be brought by projects from the first fifty by market capitalization, the analyst believes. He singled out Toncoin, TRON, Matic, Stellar and others. For such projects, the redistribution of capital from Bitcoin can have the greatest improvement