In the article about the cryptocurrency market, it’s noted that while Bitcoin remains separate from these predictions, the broader altcoin market might be approaching a pivotal moment.
According to experts, altcoins are expected to find their local bottom in June, potentially marking the beginning of a new bull cycle for these cryptocurrencies.
The analyst Rekt Capital shared insights on X on May 8, stating, “Altcoins are following the plan perfectly. Altcoins bottomed in early February. Altcoins sold off around the BTC Halving.
“Altcoins to bottom early summer.”
This timing coincides with historical trends in the altcoin market, which often sees shifts around these periods.
Despite a rough past month where altcoin market cap (excluding the top ten cryptocurrencies) plummeted over 21% to $265 billion, there is a broader perspective to consider.
Year-to-date, the altcoin market cap has increased by more than 24%, and over the past year, it has surged over 167%.
The correlation between altcoin sentiment and Bitcoin prices is significant, as highlighted by blockchain adviser Alex Onufriychuk from Qubic Labs Accelerator.
He told Cointelegraph, “There is a possibility that they could find their local bottom by June due to the lack of sufficient new liquidity from Bitcoin ETFs in the U.S. and Hong Kong.
This indicates that the consolidation period may be prolonged.”
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Aurelie Barthere, a principal research analyst at Nansen, pointed out that the behavior of Bitcoin is crucial for altcoins to thrive.
“Altcoins are high beta crypto, they are successful when the sentiment is very bullish. Since mid-March, the sentiment among crypto investors is less exuberant.
As BTC price consolidates around the 20-day exponential moving average, there is more volatility in alts.
We need a break above and a clear resumption of BTC uptrend for alts to outperform.”
Furthermore, Alex Onufriychuk added, “Even if altcoins find their local bottom around June, it does not necessarily mean that a bull run will start.
For a significant turnaround, more fundamental changes are required, such as increased retail and institutional investment and favorable regulatory developments, given the scarcity of new liquidity and heavy reliance on institutional reinvestment into newer projects.”
In addition, the broader economic environment might influence altcoin markets.
For instance, the M2 money supply turned positive year-over-year for the first time since November 2023, suggesting that investors may begin seeking hedges against inflation or alternative investments, potentially benefiting altcoins and memecoins and marking the onset of “altszn.”
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