The cryptocurrency market has been buzzing with anticipation as Bitcoin (BTC)’s recent rally to a record $71,000 and subsequent pullback sparked speculation about the upcoming altcoin season. The next two weeks are set to be a pivotal period for the entire altcoin industry, with major events on the horizon that could significantly impact market trends.
Altcoin optimism increased
The United States House of Representatives is preparing to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation aims to create a clearer regulatory framework for cryptocurrencies, potentially encouraging greater institutional adoption and market stability. Additionally, the United States Securities and Exchange Commission (SEC) is scheduled to vote on a spot Ethereum exchange-traded fund (ETF) later this week. The potential approval of both the FIT21 bill and the spot Ethereum ETF has increased optimism among investors and led to a surge in activity in crypto markets.
The value of the global cryptocurrency market currently stands at $2.73 trillion, reflecting a slight decline over the last 24 hours. However, the initial bullish momentum of the week, led by Ethereum (ETH)’s impressive rise to $3,800, triggered notable gains in major altcoins. Historically, Bitcoin has led market cycles with strong fluctuations. However, significant action often occurs during consolidation phases where altcoins take center stage. This trend is expected to become even more evident in the coming period, with the influence of different predictions of leading analysts.
Last fix completed
Popular crypto analyst Michaël van de Poppe observed that the altcoin market cap, also known as TOTAL2, has completed its latest correction. Poppe suggests that the altcoin market cap is well positioned for a rally that will retest the all-time high (ATH). Additionally, most altcoins, led by Ethereum, have trended upward from bullish flag patterns in recent days. Another respected analyst, Rekt Capital, highlighted that on X (formerly Twitter), the altcoin market cap, excluding the top 10 cryptocurrencies, has successfully retested the $250 billion level as a support zone in recent weeks. Based on its analysis, Rekt Capital expects the altcoin market cap to rise to $315 billion before retreating to $250 billion. This pullback is expected to be followed by a significant increase exceeding the market value of $440 billion.
Leading analysts are urging investors to keep their cool and prepare for the possible arrival of a “maniacal phase.” Crypto Yoddha, a leading crypto analyst, shared the view that the recent decline is merely “a lower level in the uptrend.” According to his analysis, the altcoin market is poised to retest the $1.27 trillion resistance level witnessed in March before setting its sights on the previous cycle’s all-time high of $1.7 trillion. He predicts a continuation of the upward trend that will result in a new market all-time high in the next phase.
The index paints a different picture
Despite these optimistic predictions, the altcoin season index developed by Blockchain Center offers an opposite perspective. The index defines an altcoin season as a period in which 75% of the top 50 coins outperform Bitcoin over a 90-day period. Currently, only 37% of the leading 50 altcoins have surpassed Bitcoin’s performance over the past 90 days, falling below the threshold to officially declare an altcoin season.
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