Experts speculate when the alt season will begin
In recent times, market analysts have repeatedly hinted at the impending arrival of an altcoin season. Despite these frequent forecasts, the anticipated shift has remained elusive. The conversation has been reignited following Bitcoin's recent dip to its two-month low.
The term "altcoin season" is used to describe a period during which alternative cryptocurrencies outshine BTC in performance. For this phase to be officially recognized, a minimum of 75% of the top 50 altcoins by market capitalization must surpass the leading digital currency's achievements.
Yet, throughout this period, numerous altcoins have found it challenging to overshadow Bitcoin's market supremacy. Bitcoin frequently serves as the pacesetter, dictating the upward or downward momentum of the cryptocurrency sector at large.
Can altcoins eventually overtake Bitcoin? A critical measure that often provides insights into the likelihood of an altcoin season is the TOTAL2 chart. This chart represents the collective market capitalization of the cryptocurrency market, excluding BTC.
An uptick in this indicator may signal the onset of an altcoin season, whereas a decline can imply the opposite. The TOTAL2's market valuation stood at $960.23 billion at the time of observation, marking a 25.63% increase over the past six months. Yet, the trajectory over the last month, particularly in the preceding 24 hours, has been less than favorable.
Specifically, there has been a 15.08% reduction in the last month and a 4.13% dip over the previous week. Given these dynamics, it might be premature to anticipate a swift revival for altcoins.
However, should the market valuation approach the $1 trillion milestone, it could potentially trigger a widespread uptick in prices.
Meme coins may lead the charge, according to some
Several market pundits have shared their views on the performance trajectories of these cryptocurrencies. For instance, an analyst known as Murad on X, has suggested that meme coins might spearhead the movement, regardless of whether or not an altcoin season materializes.
Considering this year's cryptocurrency trends, this prediction isn't unfounded. Meme-based cryptocurrencies such as Pepe, Bonk, Floki, among others, have surpassed numerous altcoins in performance.
While these forecasts hinge on market behavior, others have been closely monitoring the ETH/BTC chart to gauge their expectations. The ETH/BTC ratio is a key indicator showing whether Ethereum is outpacing Bitcoin or vice versa.
Traditionally, Ethereum's outperformance against Bitcoin preludes a favorable environment for altcoins to thrive over the flagship cryptocurrency. Conversely, Bitcoin's dominance often signals challenging conditions for an altcoin season to take root.
The ETH/BTC ratio has recently decreased to 0.054, representing a 1.62% drop in the past week. Just days prior, the ratio was at 0.056.
At present, 1 ETH is equivalent to 0.054 BTC. An improvement in this ratio could boost prospects for an altcoin season; however, a continued downtrend may further delay its onset.
Investors are also eyeing the potential impact of spot Ethereum ETFs beginning to trade, which could serve as a bellwether for an altcoin season. Though initially forecasted for a July 2 start, expectations have shifted towards July 8.
If Ethereum's market performance mirrors that of Bitcoin following its ETF approval in January, it could herald a bullish phase for altcoins. If not, the anticipated altcoin season could remain on the horizon.
