The crypto market has yet to experience an altcoin season like the one seen in 2021, despite the price of Bitcoin hitting new all-time highs over the past two years. This alludes to the fact that Bitcoin’s dominance in the market remains very high, thus leaving no room for altcoins. Nonetheless, this has not deterred investors from waiting for an altcoin season, and many believe that when it finally arrives, it will be more explosive than 2021.
Altcoin market gains against Bitcoin
Bitcoin has often dominated cryptocurrency and, by extension, its performance has influenced the advent of altcoin seasons. This is due to how altcoins compare to the leading cryptocurrency each cycle, and this one appears to be gearing up for a major rally.
According to analyst Mark Chadwick on X, altcoins are already bringing a major uptrend against Bitcoin. This comes as the ALT/BTC chart marked its fourth consecutive green monthly candle, leading to confirmation of a bullish crossover.
The crypto analyst pointed out that the last time altcoins made such a bullish crossover against Bitcoin was in 2021. The result of this season was the most explosive altcoin season the crypto market has seen to date, leading altcoins on runs that saw their values increase by several multiples.
Why this Altcoin season will be better than the last
Although the latest altcoin season has legendary status, Mark believes it will pale in comparison to what’s to come. A number of reasons have been put forward as to why the altcoin bull market would be better, and this relates to the broader market outlook.
First, the analyst points out that the Fed is injecting billions of dollars into the financial market. This is optimistic because liquidity tends to drive growth. Next comes the Clarity ACT which will provide formal regulation of cryptocurrencies by classifying them as securities or commodities.
Another bullish factor highlighted by the analyst is that the SEC is now pro-crypto with the Trump administration. Then there is the fact that there has been increasing activity from the NYSE and NASDAQ when it comes to cryptocurrency trading.
The last two catalysts mentioned concern adoption. The first is the fact that Fannie Mae, the Federal National Mortgage Association of the United States, announced last week that it would begin allowing Bitcoin as collateral for loans. Additionally, Mastercard is currently building crypto rails to enable payments using blockchain technology.
Taking all of this into account, Mark reckons this is a “setup of epic proportions”. If this goes according to plan, the next altcoin season could outperform the previous one and altcoins would end up winning against Bitcoin.
Featured image of Dall.E, chart by TradingView.com
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
