Bitcoin (BTC) price today soared up to $68,800, approaching its all-time high due to strong inflows into spot Bitcoin ETFs that opened in the US in January. Amid this surge, leading market analysts speculate that investor funds may shift from Bitcoin to altcoins, potentially kicking off a new altcoin season in the crypto market.
Analyst: Altcoins May Be Waiting for Bitcoin to Refresh Its Record
Last month, the value of the altcoin market saw a 50% increase, reaching $1.2 trillion, with memecoins leading the way in significant returns. However, major altcoins such as Ethereum (ETH), Cardano (ADA), and Polygon (MATIC) have not yet fully joined the market rally.
Addressing the much-debated topic of altcoin season, popular analyst CrediBuLL Crypto shared his views on potential scenarios. The analyst suggested that altcoins could start outperforming the largest cryptocurrency once BTC surpasses its previous all-time high of around $69,000. However, the timing of this shift remains uncertain, and CrediBuLL Crypto presented two possible scenarios based on historical patterns.
The first scenario involves BTC rapidly doubling in value after surpassing its previous all-time high (ATH), with altcoins rising only after BTC’s ascent slows down. The second scenario suggests that the trigger for an altcoin season could be BTC reaching its previous ATH and then either declining or consolidating at those levels.
Expert Predicts 2024 Will Be a Bright Year for Altcoins
Matthew Seigel, Head of Digital Assets at VanEck, predicts that this year will shine for Ethereum and other altcoins. Seigel pointed out that Ethereum has outperformed Bitcoin since the beginning of the year, rising 56% compared to Bitcoin’s 50% increase. He expects ETH to continue outperforming Bitcoin in the medium term, especially during the year of block reward halving.
Seigel also highlighted the strong inflows into spot Bitcoin ETFs and noted that while the regulatory environment may change over time, crypto investors should view the asset class not as a US-centric investment but rather as a hedge against the US dollar.
