The digital asset industry is positively abuzz after a recent market recovery signaled a turn in the tides of fortunes. Following a wave of bullish sentiment in the first quarter, the industry underwent a refrain of pessimism sweeping across numerous sections of the crypto space in the second quarter. This sting of negativity was especially potent towards altcoins.
However, economic pundits and crypto-analysts alike have sought to assuage jittery investors, indicating that the price rectifications are merely part of the typical business cycle. They predict that, post cooldown, the bullish rally will once again gain momentum. As we look into the crystal ball of crypto economics, these analysts see the altcoins poised for a “massive leg higher”, setting the stage for the altcoin season.
Fueling these sentiments is the surge of Ethereum, colloquially called the “king of altcoins”. The entire cryptocurrency market reflects an encouraging rise of 8.3%, boasting a staggering market capitalization of $2.55 trillion. Bitcoin, the most well-known crypto contender, has soared beyond an impressive $70,000 market value.
Ethereum isn’t trailing far behind. The past 24 hours have showcased an exhilarating performance by the second-largest cryptocurrency. Its price has rocketed with a 22% increase, reaching levels that the market has not witnessed since mid-March. However, Ethereum has yet to surpass its all-time high of $4,878, reached nearly two years ago. Observers criticized the crypto-giant’s recent lackluster growth as a major shortcoming.
However, the winds of fortune are changing. News of possible approval of Ethereum spot Exchange-Traded Funds (ETFs) has resuscitated the bullish investor sentiment, eliminating 65 days of descending trends with a single hale and hearty bullish candle.
Even as Ethereum continues its skyward march, analysts predict the entire altcoin sector to follow suit and foray into an unprecedented altcoin season. Crypto expert Rekt Capital highlighted the ‘Crypto Money Flow Cycle’, indicating that subsequent to Bitcoin’s and Ethereum’s rallies, altcoins are primed for a rally too.
Altcoin Sherpa chimed into the discussion, hinting that despite a lack of impressive performance by many tokens during the first bull run, he envisages a “cool-off” period of 1 to 4 months before the uptrend resumes with gusto.
Despite prior bull runs providing lessons to observe and consider, the unprecedented factors in the current business cycle such as the approval of Spot Bitcoin ETFs and the Memecoin presale mania, have left investors curious about the probable fruition of the alt season.
Nevertheless, several market leaders who previously advised investors to maintain calm now suggest that the community brace for the ‘maniac phase’ on the horizon.
According to Crypto Yoddha, the dip was a precursor to a higher low in an uptrend. His analysis suggests that the altcoins market is gearing up to retest the resistance level of $1.27 trillion observed in March, before attempting to break the previous cycle’s all-time high of $1.7 trillion.
The renowned analyst Michaël van de Poppe, who has recently liquidated all his Bitcoin holdings for Altcoins, added his voice to the conversation. He indicated that the Altcoin market capitalization had completed its correction.
He noted, “The next step: reaching all-time high, which is ~60-70% from here. I think #Ethereum is likely reaching that in the next 2-4 months.”
Last but not least, Crypto Jelle suggested that after an 18-month accumulation period, “Altcoins are about to embark on a massive leg higher”. The comparison was vividly painted to that of a ball being held underwater, simply waiting to bounce back with explosive force. To quote Jelle, “It’s time for history to repeat.”
Currently, the altcoin’s market capitalization is hovering around $1.15 trillion, setting expectations soaring for all the stakeholders awaiting a historic repeat performance.
