As Bitcoin reaches new all-time highs, the crypto market anticipates the next altcoin season, where altcoins outperform Bitcoin and deliver significant returns. Various factors like historical trends, macroeconomic factors, and on-chain metrics can help determine when altseason may begin. The timing and signals to watch for a strategic entry into altcoins are analyzed. Ethereum and Solana are considered essential indicators of altseason, as they have yet to reach their 2021 ATHs. The end of the Federal Reserve's Quantitative Tightening (QT) policy in late 2024 or early 2025 is expected to be a catalyst for altseason. Increased mainstream interest in Bitcoin, reflected in higher search trends, is typically a sign of a shift towards altcoins. On-chain data, such as the MVRV Z-Score and the Puell Multiple, suggests that the market is not overheated yet. Bitcoin's low futures funding rate during its recent breakout indicates the potential for further growth and a spill-over effect into altcoins. December 2024 to Q1 2025 is identified as a likely timeframe for altcoin rallies. Monitoring Bitcoin's stabilization, the performance of ETH and SOL, and any changes in Fed policy are key for a strategic entry. Large-cap altcoins like ETH and SOL often lead altseason, and it is advised to avoid FOMO and leverage trading for a safer approach.
- Content Editor ( cryptonewsz.com )
- 2024-11-14
Altseason is Near: What Signals to Watch After BTC’s Rally