Este artículo también está disponible en español.
As Bitcoin continues its impressive ascent beyond the $90,000 threshold, Altcoins are experiencing a significant surge, reaching unprecedented highs. This resurgence has allowed the sector to reclaim a pivotal two-year benchmark, potentially paving the way for a retest of the monumental highs seen in 2021. Many analysts are optimistic that the recent upward trajectory of Altcoins could indeed signal the long-anticipated Altseason.
Altcoins Market Cap Reclaims 2022 Levels
The cryptocurrency market has been on an extraordinary upward journey over the past 21 days, achieving a staggering market capitalization of $3.36 trillion. This remarkable rally, catalyzed by the US elections on November 5, propelled Bitcoin to a new all-time high (ATH) of $99,645, marking a 40% increase in its value.
In tandem, Altcoins have emerged with their strongest performance in years. Notable tokens such as Cardano (ADA) and XRP (XRP) have finally crossed the elusive $1 mark, while other cryptocurrencies like Solana (SOL) and SUI (SUI) have recently set new ATHs, fueling investor confidence for a potential continuation of this bullish cycle.
The crypto community remains optimistic about the recent performance of Ethereum (ETH), the ‘King of Altcoins,’ which recently reclaimed the crucial $3,300 support zone. This positive momentum in the crypto market has driven the Altcoins market capitalization to a two-year high, reclaiming significant levels.
Significantly, the total cryptocurrency market cap, excluding Bitcoin and Ethereum, has surpassed the Q1 2024 peak of $788 billion as Bitcoin breached the $90,000 resistance. This momentum propelled the Altcoins market cap to exceed the $840 billion mark last week, a level not observed since April 2022.
Since then, Altcoins have sustained above this range despite market corrections, transforming this horizontal level into newfound support. Additionally, they are approaching May 2021’s peak of $984 billion, a critical resistance level ahead of the Altcoins market cap ATH of $1.13 trillion.
Altseason to Start Soon?
According to Bitfinex’s Alpha report, this marks Altcoins’ “most significant trough-to-peak move” since April 2021. The 23.2% increase suggests a burgeoning investor appetite, leaving behind the previous “start of the bear market” levels.
This movement “indicates a rotation of speculative capital and interest from Bitcoin into Altcoins as retail market participation increases,” Bitfinex analysts explained, which typically marks “the onset of the final stage of the bull market where Altcoins begin to outperform Bitcoin on an aggregate basis.”
Crypto analyst MikyBull observed that Altcoins dominance “just climbed above the trend ribbon” recently. The analyst’s chart, excluding the top 10 cryptocurrencies by market cap, depicted Altcoin’s dominance at 10.37%, breaching the multi-month downtrend line.
According to the analysis, this movement has historically indicated that “Alts are poised to outperform in the coming weeks.” Similarly, he highlighted a breakout from a multi-year cup and handle pattern in the Altcoins’ chart, suggesting that Altcoins have commenced a rally after breaking through the pattern’s neckline, with the “full potential of the Altseason” expected between December and March 2025.
Looking Ahead: Market Dynamics and Forecasts
Meanwhile, Bitfinex forecasts that “short-term upside appears limited for Altcoins” due to resistance at May 2021 levels. Nonetheless, the report emphasizes that surpassing the $984 billion resistance would signal a continued ascent for Altcoins.
Ultimately, Bitfinex analysts anticipate that a significant Bitcoin correction might have a “magnified” impact on Altcoins. They expect “at minimum, a period of consolidation after a week marked by consistently high liquidation numbers for both longs and shorts in Altcoins.”
As of now, the total crypto market capitalization, excluding ETH and BTC, stands at $881.6 billion.
