Should We Expect an Altseason?
The post Should We Expect an Altseason? appeared on BitcoinEthereumNews.com.
The Bitcoin market remains relatively stable despite a deep correction at the beginning of last week. Meanwhile, the altcoin sector is experiencing an extremely difficult period. Let’s examine whether an altseason is still possible under the current market conditions. Historical Devaluation of Altcoins In their latest report, Glassnode analysts emphasized that macroeconomic factors are the main reason for the increased volatility in the crypto market. In particular, the dynamics of cryptocurrencies were negatively affected by the tariffs on imports of goods from Canada, Mexico, and China proposed by Donald Trump. Geopolitical tensions have affected investor sentiment. In addition, the strengthening of the US dollar contributed to limited liquidity. However, against the background of these events, Bitcoin demonstrated relative stability. Over the past week, the price of BTC has fluctuated in the range between $93,000 and $102,000. Experts explained this by an increase in liquidity and significant capital inflows into the main cryptocurrency market. “The growing presence of more stable and patient holders contributed to the stability of the value of BTC even against the background of a relatively unstable macroeconomic situation,” Glassnode noted. In contrast to the stable Bitcoin, altcoins faced serious problems. Using the PCA analysis method, analysts found that most ERC-20 standard tokens were closely clustered. The prices and movements of these cryptocurrencies in the market changed in the same direction simultaneously. This indicates that investors were massively selling altcoins at the same time. Therefore, many tokens failed to avoid general volatility and move independently of each other. “The altcoin sector suffered the largest relative losses during the overall decline; the global market capitalization of altcoins experienced one of the largest devaluations in history,” the experts explained. In just two weeks, the capitalization of the altcoin sector decreased by $234 billion. However, in the context of the entire…
Filed under: News - @ February 14, 2025 4:27 pm