The cryptocurrency market is buzzing with anticipation of a potential altcoin season triggered by a recent spike in altcoin market cap. Ethereum, the second largest cryptocurrency, is at the forefront of this movement, with its price hovering at a significant $3,891. Last week’s impressive 27% increase has caught the attention of cryptocurrency investors and analysts like Michaël van de Poppe, causing them to follow the altcoin market closely.
The rising tide lifts all boats: Altcoin market cap increases
TradingView data paints an eye-catching picture, showing a total altcoin market cap of approximately $1.16 trillion. This represents a significant 15% increase over the past two weeks and is approaching resistance levels in mid-March, when market capitalization reached $1.2 trillion. In a recent YouTube video analysis, Michaël van de Poppe examines the potential impact of the recently approved Ethereum ETF on the altcoin market in the ongoing bull run. Historically, distinct liquidity flow patterns have underpinned altcoin seasons and often occurred in several distinct phases.
The road to altcoin season:
- Bitcoin’s Run: The initial phase usually sees a prosperous bull market fueling Bitcoin’s growth, potentially taking it to new highs. This dominance may begin to wane, indicating a shift in investor interest towards altcoins.
- Ethereum’s Rank: While Bitcoin experiences a correction phase, Ethereum often emerges as a frontrunner, showing impressive gains. This uptrend in Ethereum may coincide with a period of consolidation for Bitcoin.
- Major Altcoins Are Coming to the Center: Established altcoins become the focus of attention and investment capital, leading to significant price increases.
- Excitement in Medium/Low Cap Altcoins: The final stage sees explosive growth and increased volatility in promising mid- and low-cap altcoins.
When will the season start?
Van de Poppe’s analysis suggests that the recent Ethereum ETF approval could trigger an altcoin season in line with historical trends observed in the cryptocurrency market. As Ethereum gains momentum and investor confidence increases, this could lead to a broader appreciation in the entire altcoin market.
The analyst emphasizes the importance of retail investor confidence, which often returns when altcoins begin to gain momentum, especially when Ethereum shows strength. The newly approved Ethereum ETF is seen as a potential turning point for the altcoin season. However, due to the listing process, the full effect may not be immediate and may take months to occur.
Beyond pure market dynamics, recent regulatory developments have also contributed to positive sentiment. Bipartisan support for the Fit21 bill and former President Trump’s acceptance of cryptocurrency donations gives the market a positive outlook. Additionally, the possibility of Ethereum being classified as a commodity represents another positive regulatory change.
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