The cryptocurrency market has yet to see an altcoin season like what we saw in 2021, despite the price of Bitcoin reaching all-time highs over the past two years. This has hinted at the fact that Bitcoin’s market dominance is still very high, thus leaving no room for altcoins to run. However, this has not dampened the anticipation of altcoin season among investors, and many believe that when it finally comes, it will be even more explosive than 2021.
The altcoin market is beating Bitcoin
Bitcoin has often been the leader in the cryptocurrency space, and thus, its performance has influenced the emergence of altcoin seasons. This is due to the way altcoins are rising to the leading cryptocurrency with each cycle, and this cycle seems to be poised for a major rally.
According to analyst Mark Chadwick on X, altcoins are already bringing a significant bullish pattern against Bitcoin. This comes as the ALT/BTC chart marks its fourth consecutive green monthly candle, confirming a bullish crossover.
The cryptocurrency analyst noted that the last time altcoins made such a bullish crossover against Bitcoin was in 2021. The result of this was the most explosive altcoin season the cryptocurrency market has seen to date, resulting in an altcoin rally that saw its values rise by several multiples.
Why will this Altcoin season be better than the last?
Although the last altcoin season had legendary status, Mark believes it will pale in comparison to what is to come. A number of reasons have been given as to why it is a better bull market for altcoins, and this has to do with broader market optics.
First, the analyst points out that the Fed is pumping billions of dollars into the financial market. This is bullish because liquidity tends to drive growth. Next is the Clarity Act which will provide formal regulation for cryptocurrencies by placing them in the categories of securities or commodities.
Another bullish factor the analyst points out is that the SEC is now more pro-crypto with the Trump administration. Then there is the fact that there is increased activity from the NYSE and NASDAQ when it comes to cryptocurrency trading.
The last two stimuli presented have to do with adoption. The first is the fact that Fannie Mae, the U.S. federal national mortgage association, announced last week that it would begin allowing bitcoin as collateral for loans. There’s also the fact that Mastercard is now building crypto trails to allow payments using blockchain technology.
Taking all these things into consideration, Mark believes it is “a setup of epic proportions”. If this happens as expected, the next altcoin season may exceed the previous one, and altcoins will end up beating Bitcoin.
Featured image from Dall.E, chart from TradingView.com
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