Bitcoin is in a roll so far establishing its place as king of crypto. Traditionally many alternative digital currencies have kept pace with Bitcoin, rising and falling in value with it. Nevertheless, this year, as Bitcoin advances forwards, it seems to be cannibalizing the altcoins, killing the dreams of an altcoin season. Crypto analysts, however, believe that the tide could soon change, as BTC’s prices sharply increase.
One of them, for instance, commented on Reddit:
“The smart people will start diversifying into other low priced tokens such as ETH, VET, KIN, XRP, and LINK… all strong buys in the end. The bulls and whales know that a x10 is chump change. They know a x50 to x100 is possible. It happens often in our crypto market. As a matter of fact it’s the only market in the world to do this”.
Bitcoin is an uncorrelated digital asset, flourishing as the global economy built on fiat ebbs. Untouched by the recent political and trade wars between key global economy players, BTC store of value status has also come to play. There has been a massive growth in institutional investors, with large whales being blamed for the commencement of the current BTC Bull Run.
Everyone on the crypto world, however, has been waiting for the alts season. Bitcoin has dominated 65 percent of the market, leaving the altcoins a small market share to brawl over. It’s not all dark and gloom though since the significant large cap alternative tokens have made gains against the USD. Their performance against BTC, nonetheless, has been lackluster in the last three months.
The Altcoin Season Is Coming
Ethereum, for example, the second largest altcoin by market cap has dipped by 35 percent against BTC in this period. Additionally, the small-cap altcoins have taken a more substantial hit, with a token like Zilliqa (ZIL) losing about 80 percent of its value.
Some analysts have however said that the signs are there, an altcoin season is coming. A respected member of Crypto Twitter has even offered some technical evidence to that effect. By his projections, The Crypto Dog, a twitter user, says that the altcoin total market cap is about to rise by 50 percent.
As per a chart he shared, the total altcoin market cap is showing an ascending broadening wedge. Of the chart, The Crypto Dog says:
“Altcoins Total Market cap resembles an ascending broadening wedge. While certainly not a guaranteed bullish signal, the last time we saw one of these in cryptocurrency there was quite a pop”.
Further, he has predicted that going by the signs, the altcoin market cap could rise by $180 billion in a few months. This is most certainly the situation that most altcoin holders are waiting for. Any altcoin holder has the potential of making 100x or 1000x more depending on the asset they have than they can with highly priced Bitcoin. Other crypto users have suggested that a BTC value of 20K is going cause some folding of the token into the altcoins.