As the presidential elections in the USA are rapidly approaching, great activity is expected not only in the political arena but also in the global financial markets. In this process, the cryptocurrency market in particular continues to wait with curiosity about what kind of effects the election results will have. Recently, many analysts and investors have expressed their opinion that a serious altcoin season may begin in the cryptocurrency market with the elections. Particularly leading analysts such as Michaël van de Poppe expect a major rise in altcoin markets other than Bitcoin and Ethereum. The expectation of this altcoin season, highlighted by Van de Poppe, indicates that the election results may also trigger this rally.
the #Altcoin market capitalization looks ready for a breakout.
The next 1-2 weeks are likely going to provide that breakout. pic.twitter.com/WXpoKVmZ5j
— Michaël van de Poppe (@CryptoMichNL) October 13, 2024
In this context, Michaël van de Poppe emphasizes that a serious increase in the market value of altcoins other than Bitcoin and Ethereum is expected, and states that the current market dynamics are suitable for altcoins to shine. This analysis is supported not only by technical data but also by political developments. With only 22 days until the US elections, optimism is blowing in the cryptocurrency market, and many analysts say that we are on the verge of a big boom in altcoins.
Regulatory Barriers and Pressure on Altcoins
With the growth of the cryptocurrency market, regulatory pressures have also increased. Regulatory pressures, especially on decentralized finance (DeFi) projects and decentralized exchanges (DEX), prevent many altcoins from reaching wider audiences. At this point, CryptoQuant CEO Ki Young Ju states that decentralized financial protocols, especially decentralized financial protocols such as Uniswap (UNI), are greatly affected by existing regulatory hurdles. According to Ju, if these obstacles are eased or eliminated, there may be a huge increase in altcoins.
It is thought that the US election results will have a direct impact on crypto regulations. In particular, the possibility of Donald Trump’s re-election may pave the way for a positive regulatory environment for the altcoin market, according to some analysts. The expectation that Trump will take a more liberal approach towards cryptocurrencies creates a positive atmosphere in the market. This could mean regulatory hurdles are removed and markets can move more freely. Therefore, many investors and analysts expect a relief and rise in the altcoin market if Trump is elected.
What Do Historical Data Say?
Historical cycles are of great importance in the crypto market. The relationship between Bitcoin and altcoins changes cyclically from time to time. While Bitcoin is often considered the first asset to move in the market, altcoins often follow this rally. Comparing current market conditions with 2020, analysts state that there are significant similarities between Bitcoin’s price movements in that period and today’s movements.
CRG, a well-known analyst, states that Bitcoin’s current phase reflects the cycle experienced in late 2020. At that time, Bitcoin was reaching new highs while the altcoin market remained dormant. However, when Bitcoin’s rise slowed, altcoins quickly became dominant in the market and a serious rally ensued. Today, Bitcoin’s market dominance hovers around 58%, and as this percentage decreases, altcoins are expected to gain more market share. If this trend continues, a new bull run for the market is just weeks away.
In summary, Van de Poppe states that the altcoin season is very close and as Bitcoin begins to trend horizontally at current levels, altcoins will fill this gap. In addition, according to Polymarket data, Donald Trump’s re-election probability is around 54%. If Trump wins the elections, it is thought that this will create a freer environment in the cryptocurrency market.
You can access live market data here.
This content Michaël van de Poppe: Breakout Awaits in Altcoins! So When? was first published on KoinFinans.