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When will a fully developed altcoin season, which is a shared desire among many individuals in the cryptocurrency world, come? Altcoin season refers to a short period in which altcoins outperform Bitcoin. So, when can investors expect this period?
Expectations for Altcoin Season in Cryptocurrencies!
Since the peak of 2021, most altcoins have lost value against Bitcoin and reached new lows. The Altseason Index indicates whether we are in a Bitcoin season or an Altseason. Currently, this index is at ten levels on an annual time frame, indicating that we are currently in a Bitcoin season and that BTC is outperforming most altcoins. The last time this index was this low was during the C-19 crash in 2020. Following this crash, the crypto market entered an Altseason supported by DeFi in the months that followed.
Historically, altcoins hit bottom when the BTC price reaches its lowest point. However, this time, due to SEC restrictions on altcoins and significant sell-offs by Robinhood, several altcoins have reached new lows despite the price movement of BTC’s rise in 2023. If history is an indicator, most altcoins have likely found their bottom, and we may witness an increase in this index in the coming months. During the FTX crash, Bitcoin and some other cryptocurrencies reached new lows, sparking a debate in the mainstream media about the collapse of the crypto market.
FTX was the second-largest crypto exchange at the time, and its crash signaled a surrender event for the majority of the crypto market. After the crash, the cryptocurrency market began to recover, just like after a real surrender. However, something unimaginable happened.
The Impact of SEC on Cryptocurrencies!
SEC started labeling the top altcoins as securities, causing most of them to reach new lows. Shortly after this, reports emerged that Robinhood started selling these altcoins labeled as securities by the SEC, causing further market collapse, resembling a real capitulation. After the XRP victory, all of these altcoins experienced significant price increases but have not yet reached new lows. This may indicate that the SEC news points to a real capitulation event and that most altcoins have discovered their true bottoms.
Numerous factors point to altcoin capitulation, and we may have already witnessed the depression stage. However, this does not mean that altcoins will start rising tomorrow or next month, but it may indicate that many altcoins have reached a price level where dollar-cost averaging (DCA) can be considered if they plan to hold in the long term.
