With support from economic and political factors, the cryptocurrency market may enter a new boom phase, creating great opportunities for both Bitcoin and altcoins.
Bitcoin Approaching $100,000, Altcoin Season May Be Coming Soon
Bitcoin (BTC) continues to reach historic highs, currently trading around $90,000. However, experts warn that if Bitcoin Dominance (BTC.D) – the index measuring Bitcoin's market dominance – falls below 58%, the 'altcoin season' could begin.
Factors Driving Cryptocurrency
According to QCP Capital, the combination of Donald Trump's victory in the U.S. presidential election and interest rate cuts from the Federal Reserve may be the main drivers for the next growth phase of altcoins.
Recently, Solana (SOL) has led the market with a 17% increase over the last weekend, surpassing both Bitcoin and Ethereum.
Nevertheless, investors remain cautious as Bitcoin approaches the $100,000 mark, an important psychological milestone.
Bitcoin Dominance: The Key to Altcoin Season
Currently, BTC.D is at 60.10%, a strong increase from 39.92% in 2022. However, if this index drops below 58%, profits from Bitcoin may shift to altcoins, opening up a new growth cycle for smaller cryptocurrencies like SOL, Cardano (ADA), and XRP, which have outperformed Bitcoin in recent weeks.
According to analyst @MikybullCrypto, the altcoin season could start from late November and last until March 2025.
Bitcoin Could Reach $100,000
Although the altcoin market shows signs of recovery, many experts predict that Bitcoin will continue its upward trend before weakening.
Tom Lee, head of research at Fundstrat, believes that Bitcoin could reach $100,000 right before the end of the year.
However, with altcoin market capitalization surpassing a significant resistance level, the altcoin season could arrive sooner than expected.
Currently, Bitcoin is trading at $91,760, stable over the past 24 hours.
