---

Although
Bitcoin
recent
price
plunge
has
sent
several
Altcoins
on
a
free
fall,
with
declines
ranging
from
30%
to
70%,
there
appears
to
be
a
beacon
of
hope
set
to
shine
through
the
murk.

The
recent
Bitcoin
Halving
in
April
is
what
the
altcoin
market
needs
to
recover
and
surge
beyond
its
highest
levels.

Related
Reading

Bitcoin
Halving:
A
Gateway
to
Altcoin
Prosperity?

Bitcoin
usually
undergoes
a
Halving
every
four
years,
and
this
major
event
halves
the
block
reward
for
miners
in
half.
This
fall
in
supply
has
normally
triggered
a
bullish
rally
not
only
for
Bitcoin
but
also
for
the
altcoin
market.

Crypto
analyst
Wise
Advice

elaborates
that
following
each
Bitcoin
halving,
there
is
a

pronounced
potential
for
altcoins
to
surge.
The
analyst
particularly
noted:

I
know
when
altcoin
season
will
happen.
And
I’ll
show
you
it…
‘Halving’
It
all
depends
on
it
[…]
When
halving
happens,
after
1–1.5
years,
the
BTC
ATH
come
And
near
that,
ETH
and
other
altcoins
boom.

Historically,
this
Halving
period
has
seen
an
explosion
of
attention
for
altcoins,
driving
their
prices
higher
due
to
the
scarcity
concerns
from
Bitcoin
following
this

event.

For
example,
in
the
previous
Bitcoin
Halving
on
November
9,
2021,
leading
altcoins,
including
—
Ethereum
(ETH)
and
Solana
(SOL),
Polkadot.
(DOT),
Avalanche
(AVAX)
all
recorded
a
new
all-time
high.

For
context,
ETH
peaked
at
$4,800
on
November
10,
SOL
came
in
too
with
its
new
peak
at
$250
5
days
earlier
as
revealed
by
Wise
Advice,
while
DOT’s
peak
at
$55
happened
on
the
4th
of
that
month,
and
AVAX
peak
at
$144
occurred
later
that
month
on
the
21st.

How
Does
The
Halving
Points
To
Alts
Season
Now?

As
Wise
Advice’
post
suggests,
such
patterns
underscore
a
recurrent
theme:
post-halving,
money
flows
from
Bitcoin
into
altcoins,
significantly
buoying
their

market
positions.

The
analyst
explained:

The
more
they
buy,
the
higher
the
price
goes.
And
it
makes
investors
profitable.
They
sell
a
part
of
it
and
send
to
Ethereum
and
other
tokens.
The
market
cap
of
these
are
way
lower,
so
even
the
inflow
of
$100
million
can
make
a
huge
change
(a
month
before
the
ATH,
Bitcoin
MC
was
in
2.5
times
larger
than
Ethereum.)
That’s
why
Solana
and
Polkadot’s
ATH
was
4-5
days
faster.
Then
money
goes
to
even
smaller
Alts.
And
they
start
to
overperform
big
ones.
The
smaller
they
were,
the
bigger
the
growth
was.

Notably,
this
shift
is
often
reflected
in
Bitcoin’s
dominance
index—a
metric
that
measures
Bitcoin’s
market
capitalization
relative
to
the
total
market
cap
of

all
cryptocurrencies.
As
observed
post-halving,
a
decline
in
this
index
signals
a
growing
interest
in
altcoins.

Related
Reading

Bitcoin

dominance
is
now
at
54.60%,
a
slight
decrease
from
above
55%.
Earlier
this
month,
according
to
TradingView.
Notably,
the
fact
that
the
index
is
still
somewhat
high,
as
it
still
stands
above
50%,
suggests
that
the
market
still
favors
BTC.

However,
the
recent
decrease
could
be
the
early
signs
of
an
emerging
altcoin
season.
Analysts
at
Glassnode
make
a
similar

point,
linking
present
market
circumstances
with
those
in
late
2020
when
smaller
stocks
and
riskier
assets
boomed,
pointing
towards
an
impending
altcoin
season.

Rotation
coming?

Yesterday,
we
saw
how

#Nasdaq
declined
>2%
–
while

#IWM
rallied
>3%.

This
is
a
clear
indication
of
Rotation.
The
move
to
riskier
assets.

Will
we
also
see
this
is

#BTC
and

#Alts?

Well
–
in
November
2020,
we
had
a
day
just
like
yesterday.
IWM
soared
and…

pic.twitter.com/WG9pooRxh1

—
????????????????????????????????????????????
(@Negentropic_)

July
12,
2024

Featured
image
created
with
DALL-E,
Chart
from
TradingView

Go to Source
Author: Samuel Edyme

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