The post Crypto Market News: Is Altcoin Explosion Incoming? What to Expect in the Coming Months appeared first on Coinpedia Fintech News
Altcoin Daily analyst Aaron Arnold, in a recent YouTube video analysis, suggests that we’re currently in the “calm before the storm” for altcoins. The key trigger for the next altcoin season is expected to be Bitcoin reaching $70,000 and Ethereum reclaiming $4,000.
Historically, altcoins tend to explode in value after Bitcoin surpasses its previous all-time highs, a phenomenon driven by what they call “The Wealth Effect.” As Bitcoin and Ethereum holders see significant gains, they diversify into lower-cap altcoins, sparking an altcoin rally. New investors who feel they missed out on Bitcoin and Ethereum often turn to altcoins, further driving prices up.
The Best Time to Accumulate Altcoins?
The analyst also highlights the current consolidation phase of Bitcoin near its all-time highs, suggesting that a major breakout is imminent. Indicators like 45% of Bitcoin’s supply not moving in the last six months suggest strong accumulation, which usually precedes a significant price surge.
The analyst also touches on global institutional interest in Bitcoin, with entities like Japan’s Metaplanet and Goldman Sachs making substantial investments. The growing adoption and institutional support for Bitcoin, including potential ETF approvals, are seen as factors that could lead to a broader crypto market rally, eventually spilling over into altcoins.
The Next Big Movers in Crypto
Based on the current market scenario, several altcoins are poised for significant gains as Bitcoin and Ethereum hit their major price milestones. Here’s a rundown of the altcoins currently positioned for a potential boom:
Solana (SOL)
Solana is expected to resume its uptrend and could surpass $250. The recent launch of a spot Solana ETF in Brazil and its integration with PayPal’s stablecoin are positive developments that could drive further price increases.
Aptos (APT)
Aptos is making waves with its impressive transaction capabilities, handling 50X more daily transactions than Ethereum and 10X more than Base. This scalability could lead to substantial growth as more users and projects adopt the platform.
Injective Protocol (INJ)
Injective Protocol is becoming increasingly relevant in the DeFi space, with its focus on decentralized derivatives and trading. The platform’s interoperability and partnerships suggest the potential for significant price action.
Toncoin (TON)
Toncoin, associated with Telegram’s blockchain project, is seeing increased interest due to its strong community and technical advancements. Its interoperability and unique use case make it a promising candidate for future growth.
Maker (MKR)
Maker is gaining attention as its governance and decentralized finance features continue to develop. The launch of new funds focusing on Maker by Grayscale highlights its growing importance in the DeFi ecosystem.
On the Flip Side
The Altcoin Season index suggests that an altcoin boom is not imminent. Currently, the market is experiencing a Bitcoin season, with BTC’s dominance rising. For an altcoin season to start, at least 75% of the top 50 altcoins need to outperform Bitcoin over the past 90 days. Given the current market conditions, it’s unlikely that altcoin enthusiasts will see gains this month. However, if the market improves by the end of Q3, there may be a chance for an altcoin season to begin.
The analysis concludes with the idea that despite the current bearish sentiment, the stage is set for a massive bull run in both Bitcoin and altcoins, with prominent figures like Arthur Hayes predicting a significant altcoin season once Bitcoin and Ethereum hit their target prices.
