Bitcoin’s current performance shows significant challenges, with its price dropping below $66,000. Maintaining this critical level has been a struggle, raising fears of substantial BTC sales. The ongoing returns from MTGOX and increased on-chain activity have added to investor anxiety. The question of when the altcoin bull run will occur remains forefront in investors‘ minds.
When is the Altcoin Bull Run?
The cryptocurrency market is experiencing intriguing times, with BTC struggling to escape a narrow trading range. Investors are cautious due to the volatility, while historical trends offer some hope beyond short-term fluctuations. The TOTAL2 chart, which excludes BTC, and the BTC market dominance (BTCD) chart are key indicators to watch. Typically, a rise in BTCD suggests weaker TOTAL2 performance, indicating BTC’s strength over altcoins makes an altcoin surge unlikely.
Recently, Bitcoin’s dominance decreased from 55.80% to 55.41%, while TOTAL2 rose by 3.86% to exceed $1.05 trillion. If altcoins continue to perform well as BTCD declines, this could signal increased demand for altcoins.
Demand for Altcoins and Predictions
CoinShares data shows strong net inflows for assets like Ethereum (ETH), Solana (SOL), and Binance Coin (BNB), despite falling BTCD. Led by XRP, this rising demand has boosted optimism among some experts. However, opinions remain divided, with some like Poppe hopeful about an altcoin rally, while others, such as Benjamin Cowen, predict a couple more months of stagnation.
Key Insights for Investors
– Altcoin investors should monitor BTC’s price around $66,000.
– Increased cash inflows into altcoins could further weaken BTCD.
– A weakened BTCD might result in a rise in TOTAL2, signaling a potential altcoin demand increase.
A plausible scenario for altcoin investors involves BTC stabilizing around $66,000, leading to increased investment in altcoins, reduced BTCD, and a rising TOTAL2. This environment could usher in a period of heightened activity in the altcoin market.
