Altcoin Market Prepares
While the crypto market emotionally gears up for increasing volatility over the next few months, the altcoin market may experience one final downturn prior to a major breakout in reaction to U.S. election results. With Bitcoin’s market dominance at its highest since early 2021, the altcoins may enter more correction before analysts say the upcoming “flush-out” will be decisive even by the end of Q4 2024.
Your altcoin receipt in three key messages
One of the most influential crypto analysts, Benjamin Cowen, has made a prediction of an “altcoin reckoning,” anticipating a major correction in the altcoin market around December 2024. This sort of “flush-out” resembles what was seen during the 2019 bear market. Cowen expects gradual recovery from this correction in early 2025, and, like in the 2020-2021 cycle, the altcoins will follow this recovery with a bang!
Altcoin market cap is receiving less pressure than anticipated, and crypto total degree took a dunk to $2.4 trillion. While Bitcoin dropped back under $70k, altcoins have felt an even steeper correction. Traders are getting prepared for more price movement as the Federal Reserve rate cut announcement and the results of the U.S. election are nearing.
Recap of Patterns Seen in the 2019 Bear Market
Cowen sees this pattern as being distilled from previous market cycles, particularly the one in 2019 where we saw a bear market. This provides hope for the altcoin market, which has followed a similar trajectory, implying that 2025 may repeat the bullrun that took off in 2020. Cowen apparently inspired some hope, though, using his zoomed-out view to explain why the altcoin downturn could last all the way to January 2025.
Cowen said this has been a long road and a lot just quit along the way, but this horrible process needed to happen.
Bitcoin Still Omits Altcoins
With Bitcoin steadily claiming more of the crypto market, now at 60.5% dominance, many alts are performing worse than BTC. For ALT/BTC pairs, this trend has remained steady for nearly 3 years, marking a constant downtrend. However, the trend of altseasons has materialised in post-halving years such as 2017 and 2021.
The wider market is on the lookout for any close in Bitcoin dominance under 50%, a trigger that could refresh appetite for altcoins. However, now crypto investor “Sensei” believes a mega altseason could be upon us in 10 days or less. That declaration is consistent with Cowen asserting that in the context of market cycles, it is historically the point of the cycle that determines the timing of altseason.
Market Sentiment: Preparing for a Cloudy Outlook
As whale activity declines since last week, market analysts warn crypto investors to be cautious of whales. Bitcoin News Transfers tapering off following Bitcoin’s recent price top suggests whales may be readying themselves for some market turbulence, says Santiment. That drop in whale activity suggests a defensive posturing as traders prepare for surprises when it comes to U.S. elections.
Against the backdrop of an upcoming announcement of a rate cut and a polarised election outcome, uncertainty has increased, raising hopes for market movement across both Bitcoin and altcoins. These events are historically accompanied by both near-term fireworks and sea changes, creating an environment ripe for a shift in the crypto landscape.
Is the 2025 Altseason Looming?
Historical scepticism of a recovery at this time in 2025 gives analysts a guide for traders in the coming months. Another drop could give a chance to some cheap entry in preparation for another altseason. Such a recovery, if not due to speculative interest in the market, could have the same characteristics as the rally of 2020–2021, which presents good news for altcoin investors.
There are obstacles ahead of us in the next few months, but something new might be taking shape for Altseason. Cowen’s final flush-out may signal an essential reset to prepare altcoins to re-capture momentum in a market that is cyclical by nature.
