On February 20th Bitcoin experienced a drop decreasing by 4% from its peak of $53,019 to a low of $50,812 within the day. This recent decline has led traders to reconsider the state of the cryptocurrency market sparking discussions, about the possibility of an altcoin season.
Traders and analysts are interpreting this price decrease as part of Bitcoins halving cycle indicating that Bitcoin may currently be in a phase before halving that is expected to be followed by an uptrend post halving. Rekt Capital, a cryptocurrency trader and analyst mentioned on February 15th the likelihood of one halving retracement for Bitcoin before it resumes its upward trend.
Amid these market shifts independent market analyst Sjuul pointed out the funding rates for Bitcoin. Advised traders to prepare for potential corrections across various assets. Market intelligence firm Santiment also highlighted activities among tier stablecoin holders who have added $44.3 million in USDT over the past two weeks with wallets ranging from $10K, to $100K hinting at potential readiness to make purchases during price dips.
Bitcoin has shown a 107% increase, in value over the year. However alternative cryptocurrencies like Solana and Avalanche have outperformed further boasting gains of 308% and significant growth signaling a performance in the world of alternative digital currencies.
According to Glassnode, an analytics company specializing in data while Bitcoin and Ethereum have seen year to date increases of 17.6% and 18.2% respectively the combined market capitalization growth of all alternative cryptocurrencies falls short of these two major players achievements. Despite this Glassnodes analysis highlights Bitcoins dominance, with $20 billion flowing into the market each month and a noticeable rise in its relative market share since October 2023.
The excitement surrounding a surge, in cryptocurrencies was amplified by independent analyst Stockmoney Lizards when they predicted on February 18 that many altcoins are poised for significant growth during the upcoming period known as “altseason.” This positive outlook is reinforced by the altcoin market cap breaking through support levels suggesting the possibility of a trend reminiscent of the impressive returns witnessed in 2021.
Nevertheless it might be premature to declare the arrival of an altcoin season based on these signs.According to data, from Blockchain Center, 59% of the 50 alternative cryptocurrencies have performed better than Bitcoin in the past 90 days.
To officially declare an altcoin season a minimum of 75% is required. Glassnodes altcoin indicator reveals a growing interest, in market cap assets indicating signs of an altcoin season although timing remains uncertain.
The cryptocurrency market is constantly changing, as shown by Bitcoins correction and the excitement surrounding the altcoin season. This underscores the nature of investing in assets.
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