Altcoin season in sight? Understand whether alternative cryptocurrencies to bitcoin $BTC can rise
Bitcoin$BTC narratives are coming to fruition in a strong rise and the next big move will be alternative cryptos: how to prepare to take advantage of the appreciation?
Bitcoin $BTC has appreciated by more than 30% in the last ten days alone. A significant jump motivated by the activation of all its catalysts in this bullish cycle:
Halving: The May event reduced the issuance of new bitcoins, making the asset scarcer.
Cutting interest rates in the American economy: with lower interest rates, investors tend to seek assets with greater risk and potential return, such as digital assets.
Donald Trump's election: The victory of a pro-crypto candidate in the US generates optimism in the sector.
Investment of institutional investors with bitcoin ETFs in sight: Adoption by large investors drives appreciation.
In the last few days, Bitcoin has practically “drawn a straight line” from US$67,000 to US$90,000, and I believe the price could extend to US$120,000 or even US$130,000.
With the Bitcoin narratives in place and its strong rise, it is time for the narratives for the crypto market as a whole to emerge. Bitcoin’s upside (potential for appreciation) will be more limited from here on, making room for investors to turn their attention to alternative cryptos - altcoins - in search of higher profit margins.
Market cycles
The crypto market moves in cycles, following patterns that become very clear when we observe the timeline. It alternates between periods of accumulation/expansion, high, distribution and low. I wrote a column on the subject, which you can read here.
At this point, many investors ask: “Is Bitcoin too expensive to get into now?” The answer depends on the profile and objective of each investor, but it is a fact that the market is expanding and we are already seeing other assets gaining traction.