Altcoins will stay happy until Bitcoin hits ‘exciting move’ – analyst
Altcoins will oscillate between big rallies and pullbacks until Bitcoin proves to cross the $100,000 mark, a crypto analyst said.
“We're really looking forward to seeing that interesting movement, and we're going to see capital rotation,” Pav Hundal, lead analyst at crypto exchange Swyftx, told Cointelegraph at Aus Crypto Con 2024.
Altcoins ‘remain rigged'
“Diamonds are in dire straits,” Hundel said, as are many memecoins that outperform Bitcoin (BTC), but altcoins will likely “hold out” until Bitcoin surpasses the six-figure price level. In the year On November 23, Bitcoin narrowly missed $100,000, reaching $99,605. At the time of publication, it was trading at $96,476.
Bitcoin was trading at $96,476 at the time of publication. Source: TradingView
“I mean, you might see a 20%, 30%, 40% gain, but then most of the action is reversed the next day,” Hundal said.
On November 21, Solana (SOL) posted a 13% gain in 24 hours, only to give up nearly 13% over the next five days.
Even the major memecoins have seen this pattern in market value. On November 15, Pepe (PEPE) surged 93.2% in 24 hours after listing announcements by Coinbase and Robinhood, only to retrace that 22% gain the next day, according to CoinMarketCap data.
Asked if PEPE has the potential to do “800% days” as seen in the previous cycle with DOGE, Handel said: “I wouldn't discount that, but when you're talking about high market rates, you really need that.” Capital flows in”.
“These kinds of things will become more possible as Bitcoin's dominance recedes.”
Bitcoin dominance measures Bitcoin's market capitalization as a percentage of the total crypto market.
Bitcoin dominance is key.
Hundall said Bitcoin's dominance could range from 65% to 67%, up to “up to 70%” before the decline begins.
“For me, it's not a matter of trying to pick PICO's dominance of Bitcoin when the altcoin market starts going down,” Hundal said.
According to TradingView data, at the time of publication, Bitcoin dominance was 58.3%.
At the time of publication, Bitcoin dominance was 58.3%. Source: TradingView
Anonymous crypto trader Mikubul Krypto said in a November 28 X post that “the decline of Bitcoin's dominance will begin next month.”
Still, CryptoQuant CEO Ki Young Joo recently told his 374,200 X followers that he doesn't expect the altcoin season to be the same as previous cycles.
Ju said that this current Bitcoin rally is driven by institutional investors with little interest in speculative tokens.
Related: Traders still riding on ‘hot altcoins' despite Bitcoin pullback: Santiment
“Unlike users of crypto exchanges, institutional investors and ETF buyers are not interested in shifting their assets from Bitcoin to altcoins,” Ju said.
“Altcoins require massive fresh capital inflows into crypto exchanges to reach a new all-time high market capitalization. The altcoin market price below the previous ATH indicates a reduction in fresh liquidity from new currency users,” he said.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
