Altseason – that exciting time when altcoins explode in value – is on everyone’s mind. But when will it happen? Coin Bureau’s Nic Puckrin, a crypto expert, offers a realistic outlook, highlighting three crucial factors needed to trigger the next altcoin boom.
What is Altseason?
Altseason is the period during a crypto bull market where altcoins (cryptocurrencies other than Bitcoin) massively outperform Bitcoin. This presents a huge profit opportunity for investors because altcoins generally have smaller market caps than Bitcoin. However, predicting altseason is tricky, especially given the sheer number of altcoins compared to previous cycles.
Puckrin’s Three Keys to Altseason
Puckrin believes three key indicators must align for altseason to arrive:
1. Bitcoin Dominance Must Fall: Bitcoin dominance refers to Bitcoin’s share of the total crypto market. For altseason to happen, this dominance needs to drop below 54%. This indicates investors are shifting their money from Bitcoin into altcoins. Simply put, Bitcoin needs to stop rising in dominance and actually fall.
2. Bitcoin Needs a New High, But Carefully: Bitcoin must break its all-time high. However, this shouldn’t drain all the available money from the market. Historically, altseason follows a period where Bitcoin establishes dominance, then consolidates, allowing investors to move their funds into smaller, riskier assets.
3. The Fed Needs to Change Course: The US Federal Reserve’s Quantitative Tightening (QT) policies – essentially, reducing the money supply – need to end, and interest rate cuts need to begin. This increased market liquidity is essential for fueling an altseason.
Current Market Conditions
Currently, the total crypto market cap has surpassed $3 trillion, but trading volume is down. The altcoin season index is currently at 21 (well below the historical altseason threshold of 75), clearly showing that Bitcoin is still dominating and altseason isn’t here yet.
