Bitcoin (BTC) now accounts for less than 60% of total cryptocurrency market capitalization, heralding the arrival of “Alt Season 2.0”.
In a tweet on March 29, analyst Filbfilb, co-founder of the Decentrader trading suite, announced that the conditions for a new Altcoin surge were finally right as their total market cap hits new highs of nearly $ 750 billion.
Bitcoin dominance at its lowest level since October 2020
Filbfilb highlighted the current BTC / USD spot price, combined altcoin market cap in US dollars and the dominance of bitcoin market cap, and summarized the market in music that will be music for altcoin traders everywhere.
“Alt szn,” he commented, conjuring up a common nickname for the phenomenon that Altcoins go up when Bitcoin cools or consolidates after its own price increase.
“Alt-Saison” has been in production for a full three years. As Cointelegraph reported, expectations for a broad revival of altcoins were high for a long time, but ultimately remained unfulfilled.
However, now that Bitcoin has consolidated after hitting an all-time high of $ 61,700, circumstances seem to have played into the hands of traders.
At the time of writing, Bitcoin’s market cap dominance was 59.4%, its lowest level since late October 2020.
The latest catalyst is probably Visa, which announced on Monday that it would support Stablecoin USD Coin (USDC) for processing and thus use the Ethereum blockchain. ETH / USD saw a slight 4.8% rise in response, with the market capitalization share of Ether (ETH), the largest altcoin, still declining from January.
If you zoom out, however, the foundation stone is laid for what Cointelegraph analyst Michaël van de Poppe expects for a “very bullish” summer for altcoins, especially as market capitalization has hit new highs and is approaching $ 750 billion.
“Ethereum will take everyone by surprise,” he wrote about the Visa decision.
Earlier price predictions for ETH / USD included USD 5,000 and even USD 10,000 in the medium term.
“”Altcoins look great, “added analyst Scott Melker.
“Bottom in” for BTC?
For Bitcoin, signs of a bullish comeback remained muted on Monday after markets hit buffers at February’s all-time highs of $ 58,300.
Intraday activity was still strong, with the pair gaining over 4% in the past 24 hours.
The question among market participants was therefore whether the jump from USD 50,000 last week represents a final price floor in the current consolidation period.
“It could very well be that the BTC low has been reached,” estimated the popular Twitter account Rekt Capital on Monday.
“If it is indeed the case, it means that $ BTC has bottomed for the second time this year after a two-week retrace. Bitcoin’s average return in 2017 was ~ 16 days.”
At the time of publication, BTC / USD was trading at $ 58,000, showing its resilience to the start of its final resistance block before reentering an unknown price area.