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Highlights
- Analysts predict altcoin correction may be nearing its end while expecting the altcoin market cap to hit $2.75 trillion.
- Crypto analyst Michael van de Poppe said that the correction phase is almost over, with Bitcoin and altcoins poised for significant upward move.
- Analysts are forecasting a strong Q1 2025 rally for Ethereum.
- Predictions suggest Ethereum could rise significantly, potentially reaching up to $32,000 if Bitcoin hits $200,000.
Following the Bitcoin price drop to $91,400 levels earlier today, altcoins faced even greater correction with Ethereum (ETH), XRP, BNB Coin (BNB), and others turning red today. However, market analysts predict that this could be the last leg of correction before a mega rally resumes in January 2025. As a result, analysts predict the alt market cap to hit $2.75 trillion during the next bull run.
Is Altcoin Correction Is Coming To An End?
Renowned crypto analyst Michael van de Poppe has expressed optimism about the future trajectory of Bitcoin and altcoins, hinting at a significant bullish phase ahead. “The correction is almost over, and the time for ‘up only’ is on the horizon for Altcoins and Bitcoin,” van de Poppe stated.
Earlier today, Bitcoin price took a dive to $91,300 level and has recovered the daily loss and currently trading 0.70% up $94,026 with a market cap of $1.862 trillion. The analyst highlighted $90K as an optimal entry point for Bitcoin longs, suggesting that the market is approaching these levels and positioning for substantial growth.
On the other hand, the alt season index has crashed from a peak of 88 to a low of 49 as of date, per the data from Blockchain Center. Last week on December 26, the index had dropped to 43 and has recovered since then showing optimism as we move into 2025. Most of the top altcoins are showing double-digit losses on the weekly chart, however, analysts are hopeful for a strong recovery in early 2025.
Will Ethereum Drive the Altseason?
Throughout 2024, Ethereum has underperformed Bitcoin by a wide margin. However, market analysts are optimistic about an Ethereum price rally ahead in Q1 2025 to lead the altseason. But ETH price might see a final dip under $3,000 before recovering to hitting fresh highs next year.
Currently, the ETH/BTC ratio stands at 0.03583 but if Ethereum performs as it did during its breakout from December 2020 to its peak in November 2021, ETH/BTC could rise to 0.114, suggesting a target price of $10,600 for Ethereum at the current Bitcoin prices.
Analysts predict that the ETH/BTC ratio can surge as high as 0.161, a nearly 4.5x increase. t the current Bitcoin price, this would push Ethereum’s value to as high as $15,200 per ETH. If Bitcoin’s price reaches $150,000, Ethereum could hit $21,900, based on this historical comparison.
With Bitcoin potentially reaching $200,000, Ethereum’s value could range from $22,800 to $32,000, a scenario that puts the ETH/BTC ratio in an interesting position.
Correction: ETH/BTC would actually be 0.161 up from 0.03583 (~4.5x). Otherwise prices are correct though.
Addition: If $ETH does just as well as from the final break out in Dec 2020 to its high in Nov 2021, ETH/BTC goes to 0.114, which would result in $10.6k $ETH at the current…
— Mat 🦇🔊 (@materkel) December 30, 2024
This could potentially also trigger a broader altcoin season with other participants like XRP, BNB, SOL, and DOGE, joining the bandwagon. DeFiTracer has forecasted that the biggest altseason is set to begin in January, citing a key technical indicator known as the golden cross. The signal, which often suggests a bullish market trend, has prompted growing optimism among traders. As per the below chart, the analyst predicts the alt market cap to reach $2.75 trillion.
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