Altcoin 'euphoria' phase begins once market cap rises 16% - Trader
One crypto trader says the total market cap of altcoins needs to rise by about 16% before “euphoria” begins, and even then the market may remain “volatile.”
The total market cap of altcoins needs to increase by about 16% from its current level before the altcoin bull season begins, and until then, the volatility will continue, according to the crypto trader.
A crypto trader who goes by the pseudonym Daan Crypto Trades said in a post on X on December 28 that the “euphoria” or “mania” phase should begin once TOTAL3 — the total market cap of all cryptocurrencies except Bitcoin — reaches
- It surpassed its all-time high in 2021 at $1.13 trillion and entered a price discovery phase.
The euphoria phase will not begin until TOTAL3 breaks its record high in 2021
According to TradingView data, TOTAL3’s total market cap is currently $962.78 billion at press time. It has increased by about 91.45% since January 1.
"As long as this price is trading between about $840 billion and about $1.1 trillion, I think it's going to be volatile," Dunn said.
Cryptocurrencies
Total market cap, excluding Bitcoin and Ethereum, currently stands at $962.78 billion. Source: TradingView
He said he would be "a little more cautious" if total government bonds fell below $800 billion.
Some analysts believe that the cryptocurrency market in general has become more volatile due to traders taking a more short-term view compared to previous years.
“Everyone suddenly decided they are the George Soros of this cycle and are constantly watching the hourly charts to determine when to enter/exit and play with leverage,” Syncracy Capital co-founder Daniel Cheung said in a post on X on Dec. 28.
This is why cryptocurrencies have not seen breakouts “as fast as previous cycles,” Cheung said.
Traders are starting to switch to altcoins.
According to CoinMarketCap data, the top three gainers among the top 100 cryptocurrencies over the past seven days are Bitget Token (BGB) up 80.65%, Virtuals Protocol (VIRTUAL) up 42.30%, and Pudgy Penguins (PENGU) up 31.63%.
Related: AI token market cap down 28% from December peak of $70 billion
Meanwhile, with Bitcoin’s dominance back to nearly 60% amid a price pause in the last few days of 2024, a growing belief among traders is that it may be time to shift their accumulation strategy towards altcoins.
“Altcoins, at this point, offer a much better R/R [risk-reward] profile than Bitcoin,” cryptocurrency trader Dyme said in a post on X on December 27, adding:
“DCA Bitcoin is out for another 1.5 years,” said Daim.
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