Bitcoin in the lead, altcoins ready to take over?
Bitcoin recently hit over $111,000, setting a new record and drawing fresh attention to the crypto world. After a small dip, focus is shifting to altcoins, some of which are showing early signs of movement. Solana is up 4%, XRP has increased by 1%, and Cardano is up 2%. These numbers make some think the next phase of the market cycle could be near.
Three altcoin stars are ready to start moving as Bitcoin continues to rise sharply.
In brief
Altcoins like Solana, XRP, and Cardano have seen small rises. A drop in Bitcoin’s market share and more money entering the market could kick off an altcoin season. Some experts believe only specific altcoins will gain until Bitcoin’s price levels out. Hope for an altcoin rally grows after Bitcoin’s jump Usually, Bitcoin leads a market rally.
Once its price stabilizes, other coins start to move higher. This pattern has happened before in past bull markets, and many traders expect it again. They watch closely for signs of money shifting from Bitcoin to altcoins.
Ryan Lee, chief analyst at Bitget Research, told CoinDesk that an altcoin rally could start if Bitcoin’s market share drops. This could give coins like Solana and XRP a chance to shine. Right now, Bitcoin’s dominance is around 60.58%, according to CoinGecko.
Reece Hobson from eToro Australia said two things could set off an altcoin rally. First, more money needs to come into the market, probably through easier money policies. Second, Bitcoin’s market share should reach about 70%. Until then, gains in altcoins may stay small.
Some market watchers see early signs of an altcoin season. Trader Carl Moon says Bitcoin’s market share is falling already, which could signal that altcoins are about to break out. This view adds to the idea that attention is shifting to other tokens.
But not everyone feels it’s time to rush in. Ash Crypto advises patience. He says past cycles show altcoin rallies usually last just four to five months. The last big gains were between January and May 2021. Before that, from 2013 to 2017, most of the rally happened from June to December. He believes another rise will come, but timing will take patience.
Mena Theodorou, co-founder of Coinstash, is more cautious. He says Bitcoin is still finding its price. This stage keeps focus and money on Bitcoin. That makes a broad rally in altcoins less likely soon. He adds that some altcoins may do well, but a wide market move doesn’t seem likely for now.
Traders are watching Bitcoin’s market dominance for clues. Some believe a drop in dominance would boost altcoins. Others think dominance needs to rise further before interest shifts. This shows there is no clear answer in the market.