May 10, 2024
Altcoins Expected to Bottom in Early Summer
Altcoins News

Altcoins Expected to Bottom in Early Summer

Analysts suggest a cryptocurrency market upturn by June, foreseeing altcoins hitting their lowest prices. Renowned crypto analyst Rekt Capital noted historical trends indicating altcoins may bottom out around early June, stating, “Altcoins hit lows in early February and sold off during the BTC Halving. We expect a bottom in early summer.”

Market Recap

 Altcoin Market Takes a Hit Over the past month, the altcoin market has faced significant pressure, with the market cap of altcoins, excluding the top 10 cryptocurrencies, dropping by over 21% to $265 billion. Despite this monthly slump, the altcoin market cap remains up by more than 24% year-to-date and over 167% in the past year.

Source: TradingView

Altcoin Sentiment Tied to Bitcoin Price

Altcoin sentiment has historically been linked to Bitcoin’s price movements. As Bitcoin experiences subdued performance, altcoins could find their local bottom around June, according to Alex Onufriychuk, a blockchain adviser and coach at Qubic Labs Accelerator. Onufriychuk explained, “There is a possibility that they could find their local bottom by June due to the lack of sufficient new liquidity from Bitcoin ETFs in the U.S. and Hong Kong.”

Bitcoin Breakout Essential for Altcoin Bull Run

Despite the potential for a local bottom, analysts emphasize that an altcoin bull run hinges on Bitcoin’s performance. Aurelie Barthere, principal research analyst at Nansen, highlighted the necessity for Bitcoin to break out to the upside for altcoins to rally. Barthere stated, “Altcoins are high beta crypto, they are successful when the sentiment is very bullish.”

Source: TradingView

Altcoin Rally Requires Fundamental Changes

While a local bottom could provide a starting point for a potential rally, fundamental changes are necessary for a significant turnaround in altcoin performance. Onufriychuk cautioned, “Even if altcoins find their local bottom around June, it does not necessarily mean that a bull run will start.”

M2 Money Supply Could Drive Altcoin Investment

The recent positive year-over-year growth in the M2 money supply in the United States could drive investor interest in altcoins. As investors seek hedges against inflation or alternative investments, part of the new money supply could flow into altcoins, contributing to a potential resurgence in the market.

Conclusion 

As the cryptocurrency market braces for potential shifts, investors remain vigilant for signals indicating the beginning of a new altcoin bull cycle.

Image by pvproductions on Freepik

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