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When will the Altcoin season start? The forecast of analyst Michaël Van de Poppe
Analysts are abuzz with speculation about the potential start of the altseason, fueled by a recent increase in the total market capitalization of altcoins. Leading this charge is Ethereum, which has seen a notable increase, with its price hovering around $3,891. In particular, cryptocurrency traders and analysts like Michaël van de Poppe have been closely monitoring altcoins following Ethereum’s impressive 27% gain over the past week.
According to data from TradingView, the total market capitalization of altcoins currently stands at around $1.16 trillion, marking a 15% increase over the past two weeks. This surge is approaching resistance levels seen in mid-March, when the market capitalization surpassed $1.2 trillion.
Michaël van de Poppe, in his YouTube video analysesdelves into the recent approval of the Ethereum ETF and its potential impact on altcoins in the current bull market.
Path to the Altseason
Looking at historical patterns, other seasons tend to follow a distinct cash flow pattern. It usually takes place in several stages before reaching the market.
The rush of Bitcoin: During this phase, a thriving bull market drives Bitcoin’s growth, potentially taking it to new all-time highs. At the same time, Bitcoin’s dominance begins to wane, indicating a potential shift towards altcoins.
Ethereum’s turn: As Bitcoin corrects, Ethereum often emerges as a favorite, showing impressive gains. Ethereum’s bullish trend could coincide with a consolidation phase for Bitcoin.
Large-cap Altcoins shine: At this stage, investor attention and capital flow towards established altcoins leads to significant price appreciation.
Small/mid cap frenzy: The final phase witnesses explosive growth and increased volatility of mid- and small-cap altcoins with promising growth potential.
When will we see Altcoin season?
Van de Poppe’s analysis suggests that the recent Ethereum ETF approval could catalyze the altseason, aligning with the historical pattern observed in the cryptocurrency market. As Ethereum gains momentum and investor confidence grows, this could lead to broader appreciation across the altcoin market.
He delved deeper into his analysis to reevaluate the importance of retailer confidence, which typically returns when altcoins start to move, particularly when Ethereum shows strength. The Ethereum ETF approval is seen as a catalyst for the potential altcoin season. However, due to the listing process, the full impact may not be immediate and may take months to materialize.
Clear rules can create momentum
Beyond market dynamics, regulatory developments have positively influenced sentiment. Bipartisan support for the Fit21 bill and Trump’s acceptance of cryptocurrency donations have helped create a favorable market outlook. Additionally, Ethereum’s potential classification as a commodity represents another positive regulatory change.
Future perspectives
The altseason may undergo a consolidation phase before gaining full momentum. After the ETH ETF, many other altcoins are lined up to try their luck, including XRP, Litecoin, Solana, and many others. The market seems bullish on embracing ETFs like never before.
You’re excited?