Veteran macroeconomist, trader and analyst Henrik Zeberg is sure that “altcoin season” will not be canceled even if the prices of several major cryptocurrencies have fallen by double digits in the past seven days.
Altcoin season is a period when altcoin prices rise significantly, outperforming larger, older cryptocurrencies like Bitcoin and ETH.
Henrik Zeberg: season Altcoin near
According to a statement Zeberg shared on Twitter, bears shouldn’t expect “desperation.” A severe market crash isn’t going to happen anytime soon. Instead, we need to get ready for “altcoin season”.
Zeberg sees “dynamic analysis” as the best indicator of the upcoming “altcoin season.” Altcoin season may indeed be upon us before he predicts a severe market downturn will wreak havoc in the medium term.
Over the past seven days, eight of the 10 largest altcoins by market capitalization have posted double-digit losses. BNB was the most active token as its market cap dropped only 1.5%.
ADA and MATIC were the hardest hit, down 14.1% and 13.8%, respectively.
CryptoQuant suggested the same
According to leading crypto data and analytics provider CryptoQuant, altcoin season could be upon us. The firm noted that spot reserves for large and mid-cap altcoins fell sharply in March, suggesting that altcoin processing funds may have accumulated inventory.
Source: CryptoQuant
During the same period, the outflow of spot reserves was not more serious than before. This makes sense as it has historically been a leading indicator of an impending bull run when there is a massive altcoin outflow in the market. Additionally, as the spot reserves of altcoins dwindle, price increases will become more pronounced.
Source: CryptoQuant
Of course, there will always be a degree of uncertainty in the crypto world. It is impossible to predict when or if altcoin season will occur with complete accuracy. However, the data provided by CryptoQuant is very promising and has attracted the attention of many investors.
Altcoins have always been an attractive investment option for crypto enthusiasts. Unlike Bitcoin and Ethereum, whose markets are relatively stable, altcoins have the potential for faster growth. However, they also carry higher risks due to their instability and are not widely accepted.
ratio Bitcoin dominance hits multi-month highs in April
As mentioned earlier, some of the biggest altcoin seasons of the past have happened on the heels of token meme bull runs. Over the past few weeks, some shady coin memes like Pepe (PEPE) and ArbDoge AI (AIDOGE) have made huge profits.
These cryptocurrencies have too many red flags: supply controlled by whales, owner-controlled contract holders who can blacklist holders at will.
In addition to Zeberg, BitMEX co-founder, veteran businessman and investor Arthur Hayes also made a similar statement on April 14, 2023.
Meanwhile, Bitcoin, the largest cryptocurrency by market capitalization, has outperformed several major altcoins in the long run. In mid-April, its dominance reached almost 50%. This is the highest level since the second quarter of 2021.
- The market value of USDT broke through 81.5 billion US dollars, approaching a record high
- These are the 5 altcoins that fell the most during market weakness
- OKB Heads to New ATH – Biggest Altcoin of the Week
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according to Kyptos
