Altcoin Season More Likely If Bitcoin Reaches $80K, Says Hashkey Capital
Hashkey Capital’s recent report emphasizes that an altcoin season is likely only if Bitcoin’s price exceeds $80,000. Currently priced at $67,331, an 18% increase is deemed necessary for this transition. Bitcoin’s dominance must also rise to 62%-70% from its current 58.94%. Analysts suggest the market is overdue for an altcoin revival, as demonstrated by considerable price gains in certain memecoins, although caution remains regarding speculative trading tendencies.
Recent analysis by Hashkey Capital suggests that an altcoin season may become likely only if Bitcoin surpasses $80,000, which represents an 18% increase from its current value of $67,331. Analysts believe that for altcoins to gain traction, Bitcoin’s market dominance would need to range between 62% and 70%. Despite Bitcoin touching a three-and-a-half-year high of 58.77% in market share, it remains at approximately 58.94%. Many experts, including MN Trading Capital’s Michael van de Poppe, emphasize that the crypto market is overdue for an altcoin season, noting that this bear market has outlasted previous cycles. In the backdrop of these forecasts, certain memecoins have recorded significant gains, with Goatseus Maximus (GOAT) leading with a 160.13% increase. However, concerns previously arose that market enthusiasm for speculative altcoins could lead to unpredictability in 2024, as expressed by Glassnode’s lead analyst, James Check.
The cryptocurrency market often experiences cycles of growth and contraction, with altcoin seasons following Bitcoin’s price movements. Historically, when Bitcoin sees substantial price increases, altcoins tend to follow suit with price surges of their own. Currently, Bitcoin is approaching an all-time high, spurring speculation about the potential for an altcoin season. The concept of dominance refers to Bitcoin’s market capitalization relative to the entire crypto market, influencing investor expectations regarding altcoin performance. Analysts are closely monitoring Bitcoin’s price and dominance levels to ascertain when an altcoin season may begin.
In conclusion, Hashkey Capital’s analysis indicates that reaching the $80,000 mark for Bitcoin is a critical threshold for the potential emergence of an altcoin season. The combination of Bitcoin’s current performance and its market dominance will play a pivotal role in determining the course of altcoins, with certain analysts emphasizing the overdue nature of this market shift. Overall, the market remains watchful of both Bitcoin’s and altcoins’ trajectories as the year progresses.
Original Source: cointelegraph.com
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