Whether a prolonged period of momentum for altcoins will result from the easing of Bitcoin’s hold on the $4 trillion cryptocurrency market is still too soon to say, according to industry experts.
Altcoins Accelerate: Rally Picks Up Pace
A so-called altcoin season cannot begin unless a trend reversal with Bitcoin’s supremacy occurs, even if the price of several altcoins is soaring, according to several analysts.
On Friday, Bitcoin held approximately 61% of the market, with a valuation of $2.3 trillion, as reported by CoinGecko. The asset’s market value reached 65.5% last month among the 17,000 cryptocurrencies monitored by the crypto data source.
This decline follows a week in which Ethereum’s price increased 20% to $3,600 and XRP’s price increased 23% to $3.46, with the latter reaching a new all-time high. Memecoins, such as Ethereum-based Floki and Solana-based Bonk, have also seen price increases of more than 45 percent.
After Bitcoin’s price peaks in prior market cycles, altcoins also tend to show strength. As the bull market continues, traders reportedly seek larger profits, shifting their focus to more volatile assets. But things have changed in the cryptocurrency sector recently.
This situation involves the introduction of spot Bitcoin ETFs in the US, a product that prevents individual and institutional investors from accessing any other on-chain asset. Analysts suggest that if the Federal Reserve were to decrease interest rates later this year, it would infuse liquidity into the market and set the stage for an altcoin season.
