🚀 Bitcoin’s rise is weak, may it usher in a new round of altcoin season?
Recently, analysts have been predicting that we may be on the verge of a new altcoin season. The Bitfinex report found that the market capitalization of altcoins is already approaching May 2021 levels, which means that capital may start to flow from Bitcoin to other cryptocurrencies, allowing altcoins to outperform Bitcoin.
At the same time, according to the TradingView chart, in the past three weeks, the Total3 index (the cryptocurrency market capitalization excluding Bitcoin and Ethereum) has increased to a level not seen in three years. Many altcoins are showing significant strength and momentum, with large-cap assets like Solana (SOL) even hitting all-time highs.
Last week, the Total3 index reached a new high in this cycle, achieving the largest significant trough-to-peak trend since April 2021, with a weekly increase of 23%. At the same time, the total market capitalization of these altcoin assets is also close to the May 2021 high of $984 billion. Bitfinex expressed its view that this may be the result of the continued development of the regulatory environment.
The report also mentioned that the current altcoin market has surpassed the high of altcoins in April 2022, which is considered the “beginning of a bear market.” With the total market capitalization of altcoins breaking through this level, it also seems to indicate that a large amount of funds are moving from Bitcoin to altcoins as retail market participation increases and speculative capital and interest increase.
However, it is still worth noting that funding rates for large altcoins remain at elevated levels, which may be a sign that investors need to be cautious as these assets may experience a minor correction in the coming days. Bitfinex said the market has experienced hundreds of millions of dollars in daily liquidations of short and long positions over the past week.
While altcoins look poised for a rebound, Bitcoin is struggling to stay above $93,000. Bitfinex warned that although the altcoin market is expected to continue rising, the magnitude of the BTC pullback in altcoins may be further extended.
💬What do you think of the report predictions for this altcoin season? How do you think Bitcoin and altcoins will develop? See you in the comments section!
