Is Altcoin Season 2024 Here as Meme Coins Lose Steam and Bitcoin Skyrockets, Prompting Investors to Change Strategies?
Bitcoin price is skyrocketing, but investors are also turning their attention to other cryptocurrencies known as altcoins. While meme coins like Dogecoin and Shiba Inu are not experiencing the same level of growth, altcoins like Ethereum, Cardano, and XRP are gaining momentum. The recent approval of spot Bitcoin exchange-traded funds (ETFs) is attracting new investors and injecting money into the crypto market.
Bitcoin has long been the dominant force in the digital market, but now the spotlight is shifting towards altcoins. In the last 24 hours, Bitcoin’s trading volume has seen a significant increase of 76.91%, reaching $64.61 billion, and the overall crypto market cap has reached an impressive $1.41 trillion.
Altcoins such as Ethereum, XRP, Cardano, Avalanche, Polkadot, and Chainlink are starting to take center stage as meme coins take a backseat. Ethereum has surpassed the crucial milestone of $4,000, and other altcoins like Ripple, Cardano, Avalanche, Polkadot, and Chainlink are also experiencing growth. Litecoin, Stellar, and Near Protocol are also gaining traction, driven by anticipation for the Nvidia 2024 GTC Conference. Market observers predict a shift from meme coins to promising altcoins.
The classic “wealth effect” is in play, as crypto investors who have profited from Bitcoin are now seeking higher returns in altcoins. This shift in wealth from Bitcoin to altcoins is making them more popular. Historically, Altcoin Season follows within 2-3 weeks after Bitcoin breaks its all-time high. The total altcoin market cap has now surpassed $1 trillion and is aiming for a new all-time high of $1.7 trillion.
This Altcoin Season may be different due to the unique dynamics of the current bull market. Insights from Santiment suggest a shift, with Bitcoin reaching new highs and significant capital inflows through Spot Bitcoin ETFs. Altcoins are gaining attention as the total crypto market capitalization and trading volume continue to grow.
Bitcoin’s rally, fueled by institutional investment following the approval of Spot BTC ETFs in January, could extend the altcoin season and change market dynamics. In the battle between altcoins and Bitcoin, if BTC breaks its previous all-time high and quickly doubles in price, a mega breakout is expected. Altcoins may temporarily take a step back during this surge, waiting for their moment in the spotlight when Bitcoin takes a breather.
One thing is certain: Altcoins are poised to shine brighter than ever before.