4 reasons for the delay in the rise of altcoins; When does the 2024 altseason start?
Study time: 2 minutes
In the ever-evolving crypto market, while Bitcoin is the leading digital currency, other cryptocurrencies (altcoins) also offer unique opportunities for innovation and profit.
Nevertheless, the incremental rally of altcoins, or in other words, the altseason, has been delayed and it seems that 4 main factors have played an important role in this issue.
1. Geopolitical tensions in the Middle East: The performance of altcoins can be affected by various external factors. One of the dominant factors is the geopolitical tensions in the Middle East, in particular, the recent conflict between Iran and Israel, which affected the entire crypto market, including altcoins.
Investors respond to such events by moving their assets to safe havens. Hence, the demand for risky assets, such as altcoins, decreases.
2. Increasing dominance of Bitcoin: In recent days, the dominance of Bitcoin on the market has reached more than 53%. This has caused users to become more cautious about investing in altcoins and focus on the performance of Bitcoin.
3. Market Cycles and Timing: The crypto market is known for its repeating patterns. An analysis of the historical trends of altcoins suggests that market cycles may be longer, potentially delaying price growth compared to previous periods.
According to analysts, the rally of altcoins in the current cycle may be delayed until the price of Bitcoin stabilizes.
4. Market Manipulation by Whales: Whales have a significant impact on price movements. These big investors have recently increased their selling pressure, causing prices to drop and creating a sense of uncertainty in the market.
For example, an unknown wallet transferred around 25 million Ripple (XRP) to the Bitstamp exchange on April 8, which is attributed to the recent drop in the price of XRP
