The current world of cryptocurrency is witnessing a rather significant revival, which brings optimism and new opportunities to various spheres. While sentiment turned slightly bearish towards altcoins in the second quarter following a great run in Q1 among industry experts, the future looks bright for altcoins again. This would mean that there could be a relatively significant increase in the value of these coins and symbolize the start of an alt season.
The market capitalization of cryptocurrencies, in general, has increased sharply over the past few months to 8.3% and is now valued at $2.55 trillion. Bitcoin, the most prominent digital currency, has again risen to more than seventy thousand US dollars, showing resilience in the market.
An equally impressive performance was noticed in the top competitor of Bitcoin – Ethereum, which has added an impressive 22% during the day and reached the highest price since mid-March. While it is still significantly lower than its all-time high of $4,878, the ‘disappointment’ narrative surrounding Ethereum, this cycle has since reversed, and the bulls are back in town. This positive change is primarily driven by rumors of approval of ETH spot exchange-traded Funds (ETFs), which provoked a substantial price increase.
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With Ethereum becoming the new hot token, analysts have begun predicting that the entire altcoin market is set to explode. This can also be seen through the ‘Crypto Money Flow Cycle’ suggested by Crypto expert Rekt Capital, which shows that altcoins, with their double-digit returns, follow the rally of Bitcoin and Ethereum. This aspect is well supported by other writers who have pointed out that many altcoins did not register high levels of growth during the early stages of a bull run. Altcoin Sherpa expects sideways trading for 1-4 months before these assets start rising again.
However, some peculiarities in this current market cycle make it quite different from the previous cycles. When considering the current situation with products like Spot Bitcoin ETFs and the mania associated with memecoin presales, forecasting becomes much more challenging. Nonetheless, numerous experts continue to pin their expectations on the future of cryptocurrencies.
For instance, Crypto Yoddha used a chart on the 2024 altcoin to explain that the current dip was expected in an upward trajectory. He anticipates that the altcoin market capitalization will likely revisit the previous high of $1.27 trillion made in March 2021 and possibly cross this mark to $1.7 trillion in the second phase of this bullish run.
In the same positive sentiment, another analyst popularly known as Michaël van de Poppe, who has progressed from solely investing in Bitcoin, has also stated that the correction in altcoin market capitalization is over, and more record highs are coming. He foresaw that the figure would rise by 60-70% within 2-4 months. Similarly, Crypto Jelle himself also had a positive outlook towards the market, indicating that its position was like a ball that was once pushed down but now has enough force to float up. He claims that market growth cycles could also be applied to the overall repetition of history.
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The global crypto community now looks forward to one of the most anticipated seasons, the altcoin season, and this means that the community is well prepared to deal with all the fluctuations that may manifest in this growing market.
