Altcoins will continue to experience dramatic rallies and pullbacks until Bitcoin firmly establishes itself above the $100,000 mark, according to Pav Hundal, lead analyst at crypto exchange Swyftx. Speaking at Aus Crypto Con 2024, Hundal stated that Bitcoin’s trajectory remains a pivotal factor in unlocking sustained altcoin growth.
“We’re really waiting to see that exuberant move, and then we’ll look at that rotation of capital,” he stated during the event. While some altcoins—such as memecoins—have shown brief moments of outperformance, Hundal predicts that most will remain “choppy” until Bitcoin secures a six-figure milestone.
Bitcoin came tantalizingly close to the psychological barrier on November 23, reaching $99,605 before retreating. As of now, it trades at $96,476, leaving altcoins in a state of flux.
Short-Lived Gains and Retracements
Hundal pointed to several recent examples of altcoin volatility. On November 21, Solana registered a 12.98% surge in just 24 hours, only to relinquish almost all those gains—13%—within five days. Similarly, on November 15, Pepe soared by 93.15% following its listing announcements on Coinbase and Robinhood but retraced 22% of its gains the following day.
“Altcoins might see gains of 20%, 30%, or even 40%, but they often give up most of those moves just as quickly,” Hundal explained.
When questioned about whether memecoins like Pepe could replicate the 800% gains seen in previous cycles with Dogecoin, Hundal acknowledged the possibility but stressed the importance of capital inflows. “These sorts of things become more possible when Bitcoin dominance is coming back to the downside,” he noted.
Bitcoin Dominance Sets the Stage
Hundal also highlighted Bitcoin dominance as a key metric in predicting altcoin performance. Currently sitting at 58.30%, according to TradingView, Bitcoin dominance measures Bitcoin’s market capitalization as a share of the total crypto market.
Hundal believes dominance could climb to the 65-67% range, potentially even hitting 70%, before reversing. “For me, it’s not about picking the precise peak of Bitcoin dominance. It’s about recognizing when conditions are shifting for the altcoin market,” he said.
With Bitcoin’s price movement and dominance shaping the broader crypto landscape, market participants are closely monitoring its next move to assess whether altcoins can break free from their current volatility. Until then, altcoin traders may face more turbulence ahead.
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