Altcoin ‘euphoria’ phase begins once market cap jumps 16% — Traders

crypto traders says the altcoin total market cap needs to rise around 16% before “euphoria” sets in, and until then, the market could remain "choppy."

The altcoin total market capitalization must increase around 16% from its current level before the euphoric altcoin season begins; until then, volatility will continue, according to a crypto trader.

Pseudonymous crypto trader Daan Crypto Trades said in a Dec. 28 X post that the “euphoria” or “mania” phase should start once the TOTAL3 — the total market cap of all cryptocurrencies excluding Bitcoin BTC$95,146 and Ether ETH$3,397.18 — surpasses its 2021 all-time high of $1.13 trillion and enters price discovery.

The euphoria phase will not begin until TOTAL3 breaches 2021 ATH

The TOTAL3 is currently $962.78 billion at the time of publication, according to TradingView data. It has increased approximately 91.45% since Jan. 1.

“As long as this trades between ~$840B and ~$1.1T, I think it will be choppy,”

I would be a “bit more cautious” if the TOTAL3 fell below $800 billion.

Some analysts believe the overall crypto market has become more volatile due to traders adopting a more short-term outlook than in previous years.

Syncracy Capital co-founder Daniel Cheung said in a Dec. 28 X post, “Everyone decided they were George Soros all of a sudden this cycle and constantly monitoring hourly charts to time entries/exits and playing with leverage.”

Cheung said this is why crypto tokens have not seen breakouts as “fast as prior cycles.”

Traders are starting to rotate to altcoins

According to CoinMarketCap data, the top three gainers among the top 100 cryptocurrencies over the past seven days are Bitget Token (BGB) with an 80.65% rise, Virtuals Protocol (VIRTUAL) with a 42.30% rise, and Pudgy Penguins (PENGU) with a 31.63% rise.