A cross-section of the digital asset community has tipped a larger rally in altcoin prices, suggesting a strong dominance in the coming week.
The cryptocurrency market has witnessed a surge in activity, with a particular focus on the world of altcoins. As Bitcoin price hovers over the $100,000 mark, a cross-section of the digital asset community has tipped a larger rally in altcoin prices, suggesting a strong dominance in the coming week. This bullish projection will start with a surge in Ethereum’s price over the $2.5k mark.
With a rise in altcoin prices, crypto enthusiasts have explained the chances of an altseason this cycle. A season is determined by the overall performance of top altcoins above Bitcoin within a timeframe. This is characterized by mass capital flow off the top crypto assets to Ether, XRP, Solana, etc.
"We can definitively say that altcoin season has begun," the crypto analyst, known as CryptoGoos, stated explicitly.
"Also, Bitcoin's dominance will need to decrease by 15-50% for a full-fledged altcoin season to emerge, with a significant portion of capital shifting from Bitcoin to other cryptocurrencies, resulting in substantial price increases. This decrease usually occurs at the end of the Bitcoin bull run, which is still a ways off."
However, the co-founder of Black Swan, known as Vandell, opposed the view of an altcoin season. According to him, recent prices have been stimulated by positive macro trends that have not affected Bitcoin’s dominance. BTC’s dominance is expected to plummet between 15% and 50% for a fully blown alt season.
"If you think altcoin season is starting now with Bitcoin dominance still at 64% and no major shift in the market share, you're mistaken. This is all driven by the macro factors, remember that. A significant decline for Bitcoin, very likely in 2025, is needed to ignite the next altcoin season, driving capital into altcoins and other cryptos for substantial price rises. This decline has always been at the end of the Bitcoin bull run." Vandell added.
The recent surge in Bitcoin’s price comes following the US-UK trade deal and an overall cooling of political tensions. BTC’s price hit a three-month high above $103k, while Ethereum reclaimed $2,300.
At the time of writing, Ether exchanges recorded a 20% daily price rally, taking its weekly gain above 28%. The next largest crypto, saw an 8% spike, while Solana and Cardano posted 8.2% and 7.4% inflows, respectively.
