Altcoins are moving slowly, but Bitcoin is ahead of the curve, with the largest digital asset falling just below $64,000 on February 28.
Although there was a slight pullback today, the 25-month high brought BTC to within 11% of its November 2021 high of $69,000.
The same goes for most altcoins that are down more than 50% from their all-time highs.
Moreover, Bitcoin’s dominance of 54.6% is close to its highest in two years. This means there will be no alt season until this starts to decline.
Altseason Hopium cultivation
On February 28, altcoin trader ‘CryptoAmsterdam’ examined the flow of funds from BTC to high-value altcoins and then to low-value altcoins, as observed in previous cycles.
“All assets move in similar cycles,” he said, suggesting some altcoins that are still lagging but could make big moves once alt season begins.
If you missed Bitcoin, don’t worry.
Altcoins will do something similar, but the pumps will be much more enthusiastic.
Here are 9 altcoins ready to launch;👇 pic.twitter.com/9g2H4QQ9IT
— CryptoAmsterdam (@damskotrades) February 28, 2024
Crypto Trader Mac said His 500,000 X followers predicted that Bitcoin would “reach a quiet ATH in the next three days” and then revert.
“Then replacements will start pumping like crazy. If you are left out, be prepared to deploy all your capital.”
Meanwhile, CNBC cryptocurrency trader Ran Neuner said: I left a comment. It was a “new kind of cycle” because Bitcoin was no longer siphoning liquidity from altcoins while it was rising.
“Bitcoin is driven by Wall Street, altcoins are still driven by cryptocurrency-based funds and retail,” he said.
“Soon cryptocurrency holders will be willing to give up a small portion of their Bitcoin and an altcoin cycle will begin. Please be patient. If Bitcoin goes higher, it will give more power to altcoins!”
Not so fast…
Cryptocurrency YouTuber ‘yourfriendSOMMI’ observed that the altcoin rebound ended around the time the U.S. Federal Reserve (Fed) cut interest rates in 2019. A rate cut during this cycle is expected in June.
This year, altcoins could see a sideways or downward trend for several months, followed by a huge surge in early 2025 if history rhymes.
❤💛💛💙
spooky:
Altcoins ended their rally around the time the U.S. Federal Reserve cut interest rates for the first time in 2019.
The US Federal Reserve is currently expected to cut interest rates in June 2024 (60% probability).
We’ve been hoping for altcoins to surge, but this move… pic.twitter.com/Sz9Vh21ULw
— yourfriendSOMMI ❤️💛💛💙 (@yourfriendSOMMI) February 29, 2024
Cryptocurrency market capitalization is currently at $2.39 trillion, its highest level since April 2021, just under 30% from its peak of $3.8 trillion.
However, Bitcoin is primarily in the driver’s seat as most altcoins are inching higher while Big Brother is on a tear.
At the time of this writing, only Solana (SOL), Dogecoin (DOGE), Toncoin (TON), and Shiba Inu (SHIB) have surpassed BTC in the top 20 cryptocurrencies.
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