An altcoin rally is possible in the final months of 2024

Altcoins fought an uphill battle during the first eight months of 2024, but several signs point to an impending explosive recovery.

Ethereum has been in a downtrend against Bitcoin in recent days, which has contributed to weakness in the cryptocurrency market. However, relief could be on the horizon in the coming months.

The bad news is that Ethereum is currently at its lowest point against Bitcoin in the past 1,000 days. That is a massive blow to everyone who has invested in Ethereum, especially after multiple upgrades in recent years. Although Ethereum ETFs have also been launched, these have failed to provide a strong boost.

On the bright side, all this market weakness could simply be due to seasonality, a factor that could soon be in favor of the bulls. In previous years, altcoin markets have risen and fallen depending on the season. A clear example is Chainlink (LINK), which typically rises against Bitcoin in the second half of the year while losing value during the first half. It lost over 60% of its value during the first half of the year in 2022, 2023, and 2024, and rose over 120% in the second half of the year in 2022 and 2023.

Chinese liquidity injections are another phenomenon that correlates with the altcoin market. Chinese liquidity expands and decelerates on a six-month cycle. Momentum grows during the latter part of the year (and in January and February) but decelerates during the other months. The most recent expansion began in September 2023 and peaked in February. That correlated with the most recent spike in altcoin markets.

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