Bitcoin (BTC) Price Breaks $68,000, Will Altseason Kick-In Soon?

Earlier today, the Bitcoin (BTC) price rallied all the way to $68,800 just inches away from hitting its all-time high levels. The strong inflows into the newly launched Bitcoin ETFs have triggered an unprecedented rally in Bitcoin and the broader crypto market. However, some top market analysts believe that investors could start rotating funds from Bitcoin to altcoins thereby kicking-in the new altseason in the market.

New AltSeason to Begin Soon?

Over the last month itself, the altcoin market cap has surged by a staggering 50%, from $800 billion to now at $1.2 trillion. The major contributors here have been the meme coins that have given multi-fold returns just over the last week. On the other hand, top altcoins like Ethereum (ETH), Cardano (ADA), Polygon (MATIC), etc. have yet to participate in the mega rally.

So when is the altseason starting actually? CrediBuLL Crypto, a popular analyst in the cryptocurrency sphere, delves into the much-discussed topic of altseason, offering insights into potential scenarios.

The analyst suggests that altcoins may start to outperform once Bitcoin (BTC) surpasses its previous all-time high (ATH). However, the timing of this shift remains uncertain. CrediBuLL Crypto outlines two possible scenarios based on historical patterns:

1. In the first scenario, BTC experiences a decisive breakout past its previous ATH and swiftly doubles in value over a few weeks. During this rapid ascent, altcoins may not see significant gains as attention remains focused on BTC. Altcoins may only begin to rally once BTC pauses following its breakout.
2. Alternatively, BTC could reach its prior ATH but face rejection or consolidation at these levels for several weeks. During this period, altcoins could start rallying while BTC consolidates. Subsequently, once BTC resumes its upward trajectory and doubles in value, altcoins may continue to gain momentum alongside it.

In the first scenario, altcoins typically start rallying collectively several weeks after Bitcoin surpasses its previous all-time high (ATH). In the latter scenario, they begin rallying almost immediately after Bitcoin touches its prior ATH, he added.

VanEck: ETH To Outperform BTC

In a recent interview CryptoQuant, VanEck’s Head of Digital Assets Matthew Seigel stated that 2024 would be the year for Ethereum and other altcoins. So far in 2024, Ethereum remains as an outperformer to Bitcoin, with the former having 56% gains year-to-date while BTC keeps up with 50% gains.

“I do think when the year is said and done, ETH will have outperformed BTC,” said Seigel. He further added that in the medium term, ETH stands to outperform Bitcoin, especially in the halving year. Seigel added that he doesn’t think that Ethereum will flip Bitcoin as the top cryptocurrency, howsoever, it will surely outperform the largest crypto asset class. If so, the Ethereum price rally could trigger a new altseason moving ahead into 2024.

Furthermore, the VanEck chief also touched upon the strong inflows into Bitcoin ETFs. He added that the US government doesn’t want banks and brokers to offer these assets to their clients. As a result, these banks and bank-owned brokers have been slow in listing these ETFs. However, some banking giants like Morgan Stanley are already taking this into consideration.

Interestingly, Seigel added that while the regulatory outlook could change over time, crypto investors should keep in mind that it is not a US-asset class but rather anti-dollar.