Is It Altseason Yet?

Since Bitcoin began ranging in March, the anticipation of an "altseason" has been a hot topic among popular crypto influencers and market participants.

The approval of Ethereum ETFs (Exchange-traded funds) has further fueled these expectations, pushing cryptocurrency into the mainstream and elevating its popularity. Undoubtedly, when we enter the final euphoric phase of the cycle, we can expect massive growth due to entirely new inflows of capital.

The path to altseason

The market's dynamics have shifted. Traders and investors have gained more wealth and expertise, providing more potential for growth. Yet, will this alter the path to altseason?

Source: @SecretsOfCryptp

The trajectory to altseason has been well-documented, particularly how it unfolded in 2021. Since October 2023, there's been a noticeable shift towards mid-cap cryptocurrencies as investors seek higher returns, moving away from the modest gains of Bitcoin and Ethereum.

Additionally, significant capital has flowed into memecoins on Solana, reflecting a thirst for potentially higher returns. Despite these trends, the fundamental cycle persists: investors tend to gravitate back to large caps, viewed as safer investments.

Altseason drivers

The popularity of cryptocurrency has surged in recent months, propelled by the launch of Bitcoin and Ethereum ETFs. However, this spotlight on the major players overshadows the smaller caps. Substantial institutional funds have poured into Bitcoin, and it's expected that Ethereum will follow suit once its ETFs are activated.

As Bitcoin and Ethereum gain momentum, it is prudent to stay invested rather than holding cash or stablecoins. We are entering a euphoria phase, characterized by continuous growth, which could carry on through to the U.S. elections and possibly beyond.

After Bitcoin reaches its peak, it's unlikely to retract majorly as it has done in previous cycles, due to the mass adoption already underway. This may set the stage for a longer and more robust altseason, with Bitcoin maintaining higher price levels. Traders are also less inclined to exit the market after two years, as was common in previous cycles.

What's ahead?

If the market echoes past patterns, we might anticipate a calm summer. However, given that the market has already been tranquil for three months, the euphoria phase may kick off sooner and last longer.

It's advisable to focus on spot trading only and avoid panic selling. This approach will position investors to capitalize on the potential upswing without succumbing to the volatility of quick exits.