Insights from experts amid Bitcoin’s halving aftermath
The aftermath of Bitcoin’s recent halving has prompted experts to analyze market trends and predict potential altcoin rallies. Despite high expectations for a surge in Bitcoin’s value, the market has remained relatively flat, failing to reach the record-breaking highs seen in March 2024.
This has led many investors to favor Bitcoin over altcoins, resulting in a significant decline in the combined market cap of altcoins since March. The past month has been particularly challenging for many altcoins, with approximately 80% of the top 100 altcoins experiencing declines ranging from 2% to as much as 50%.
Ethereum, for example, saw its value steadily decline from a high of $3,727 on Apr. 8 to approximately $3,200 by Apr.
23, reflecting the downward trend in the altcoin market. Following Bitcoin’s surge, experts often observe a phenomenon known as the “altcoin season,” during which capital flows into altcoins, causing a decrease in Bitcoin’s dominance.
However, current market indicators do not reflect this trend, with the Altcoin Season Index standing at 39 as of the latest data, suggesting that an altcoin season may not be imminent. While altcoin rallies can occur at any time, they often coincide with specific market conditions, typically several weeks or months after Bitcoin’s halving events.
To gauge whether altcoins are gaining momentum, investors are advised to pay close attention to an increase in trading volume and sustained price appreciation across multiple altcoins. Looking ahead, experts anticipate a potential major rally in altcoins, especially if Bitcoin maintains stability.
It is advised to closely monitor key indicators, such as Bitcoin dominance, and keep track of altcoins to make informed decisions about crypto portfolios. However, investors are always reminded of the golden rule of investing: never invest more than you can afford to lose.
