Market adjustments and opportunities coexist: the altcoin season is far from over
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Market expert Lark Davis recently pointed out that despite the short-term adjustment in the cryptocurrency market, the potential of the altcoin season is still huge. He believes that the current total market value of altcoins is about 1.05 trillion US dollars, which is close to the historical high of 1.13 trillion US dollars in November 2021, which may be the prelude to a new round of growth.
Key drivers of the altcoin season
Davis analyzed the following key factors, indicating that the altcoin market may usher in a strong breakthrough:
Bitcoin's strong performance
Bitcoin is currently close to its historical high, which usually drives the market's interest in altcoins. In the past cycle, as the price of Bitcoin soared, funds gradually flowed into altcoins, driving overall market growth.
Historical data supports the arrival of the altcoin season
Davis mentioned that historical data shows that the breakthrough of the altcoin market value often brings a new round of market climax:
2018-2021: The altcoin market value re-broke from the high point in January 2018 and reached 1.13 trillion US dollars in November 2021, an increase of more than 200%.
The reappearance of this pattern may mean that altcoins are about to usher in the strongest outbreak in the history of cryptocurrency.
Cryptocurrency analyst Miles Deutscher also agrees with this view, emphasizing that Ethereum (ETH) is usually a leading indicator of the altcoin season:
January to May: Ethereum's average monthly return is 28%, far higher than 3% in other months.
During the altcoin season, Ethereum's performance against Bitcoin is usually 20% higher, further attracting capital from Bitcoin to Ethereum and other altcoins.
Ethereum’s key role
Ethereum (ETH), the current largest altcoin in the market, is priced at $3,686. Although it has fallen by nearly 6% in the past week, it is still an important driving force for the altcoin season:
Outlook: Possibilities after breaking through $1.13 trillion
Market analysis generally believes that once the altcoin market value breaks through the historical high of $1.13 trillion, it will trigger a new round of "super altcoin season", which may bring up to 200% or more market value growth.
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