Crypto market volatility: Altcoin market value needs to rise 16% to trigger "frenzy"

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A cryptocurrency trader said that the current market may remain "volatile" until the total market value of altcoins increases by about 16%. Before that, the "frenzy season" of altcoins may not come. Anonymous trader Daan Crypto Trades pointed out in a post on X on December 28 that TOTAL3 (the total market value of all cryptocurrencies except Bitcoin) needs to break through the historical high level to enter the "excitement stage".

TOTAL3's current market value is $962.78 billion, which is still a long way from its 2021 all-time high of $1.13 trillion. According to TradingView data, TOTAL3 has increased by 91.45% since January 1, but trader Daan believes that the "frenzy" stage of the market will not officially begin until TOTAL3 breaks through the 2021 ATH. He further stated that the market will remain volatile between $840 billion and $1.1 trillion; if TOTAL3 is below $800 billion, he will become more cautious.

Reasons for crypto market instability

Some analysts believe that the current market instability is closely related to traders' excessive focus on the short-term market. Daniel Cheung, co-founder of Syncracy Capital, mentioned in a December 28 X post that many traders, in their attempt to become investors similar to George Soros, closely monitor hourly charts and use leveraged trading to determine entry and exit times, which exacerbates market volatility.

The rise of altcoins and Bitcoin's dominance

Despite the overall market instability, altcoins have performed strongly recently. According to CoinMarketCap data, the top three cryptocurrencies with the largest gains in the past seven days are Bitget Token (BGB) (up 80.65%), Virtuals Protocol (VIRTUAL) (up 42.30%), and Pudgy Penguins (PENGU) (up 31.63%). As Bitcoin's price stagnates in the last few days of 2024, **Bitcoin's market dominance has rebounded to nearly 60%, and more and more traders believe it is time to turn accumulation strategies to altcoins.

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