bitcoin Temporarily Surpasses $70,000: Attention Shifts to Altcoins Amid Memecoin and ai-Themed Cryptocurrency Rally
Earlier today, bitcoin (btc) reached a new all-time high of $70,184 before experiencing a noticeable decline. This event has caused quite a stir in the crypto community as altcoins, particularly memecoins and ai-themed cryptocurrencies, have been outperforming bitcoin with impressive gains over the past week. As a result, discussions about an “altcoin season” (altseason) have resurfaced within the crypto sphere.
Market Capitalization Milestones and Altcoin Gains
The surge in altcoin activity coincides with the total crypto market capitalization surpassing $2.5 trillion, a figure which demonstrates the current bullish momentum in the market. Similarly, altcoins have displayed significant growth, with their total market capitalization surpassing $1.1 trillion on the same day, as per data excluding bitcoin’s market cap. In the past three months, altcoins have registered approximately 64% growth in value, rising from $697 billion to $1.14 trillion as of March 7, 2023.
Memecoins and ai-themed Cryptocurrencies: Recent Rally
Notable performers amid this altcoin rally include memecoins like dogecoin and Shiba Inu, which have experienced gains of 20% and 130%, respectively, within the last week. Additionally, new tokens such as Pepe, Bonk, and Dogwifhat have also experienced substantial increases in their values.
Tokens within the ai ecosystem, including Fetch.ai, Synesis One, SingularityNET, and theta Network, have all reported double to triple-digit gains within the same timeframe. In contrast, bitcoin has only recorded an 8.5% increase during this period.
Altcoin Season: Criteria and Timing
While these impressive performances by altcoins have many speculating about the start of an altseason, it may be premature to make that declaration. The Altcoin Season Index, which measures whether 75% of the top 50 coins have outperformed bitcoin over the last 90 days, indicates that only 69% of these altcoins have done so. This suggests that although we are close, the full criteria for an altseason have not yet been met.
Industry Insights and Predictions
A recent market report by K33 Research proposes that the situation could change soon. The report highlights that since November 2022, bitcoin’s market cap has doubled compared to the value of all cryptocurrencies except btc and Ether. This setup mirrors the scenario before the 2020 altcoin bull run, according to K33 Research. They suggest, “Judging by history, altcoins will start outperforming about the time we are now.”
CrediBULL, an independent analyst, has outlined two possible scenarios for the start of the altseason. The first involves a significant breakout of bitcoin followed by altcoins failing to gain much attention until bitcoin pauses. The second scenario entails bitcoin facing rejection or consolidation at its previous all-time high, which would prompt altcoins to rally almost immediately. CrediBULL concludes, “The common theme here and the key takeaway is that after btc hits prior ATH, alts begin rallying at the first major pause/consolidation of btc, whether that at prior ATH or far above it.”
Michaël van de Poppe, founder and CEO of MN Trading Consultancy, however, believes that the altcoin season has not yet started. He points out that altcoins still need to reach “40-60% market capitalization” before reaching their 2021 highs above $1.1 trillion.
A Playful Marker: Doge vs. ADA
cardano founder Charles Hoskinson offers a unique perspective on the altcoin season, suggesting that it will officially begin once DOGE overtakes ADA in market capitalization. This playful marker provides an amusing yet interesting way to track the beginning of the altseason.
As these events unfold, it’s essential for investors and traders to stay informed about market trends, predictions, and insights from industry experts to make well-informed decisions.
