Veteran Traders Signal Altcoin Season as Bitcoin Pulls Back

Bitcoin’s retreat below the $100,000 mark has shifted market focus towards altcoins, signaling the potential start of an "altseason," according to seasoned crypto traders.

The flagship cryptocurrency recently surged to an all-time high of $103,900 on December 5, following bullish momentum sparked by Donald Trump’s victory in the U.S. presidential election. However, profit-taking activities led Bitcoin to dip below the critical $100,000 threshold, triggering renewed interest in alternative digital assets.

Altcoin Season in the Spotlight

Michaël van de Poppe, a prominent crypto trader and investor, highlighted the parallels between Bitcoin's current price movements and its behavior in December 2023. He predicted that the market correction could set the stage for altcoins to outperform Bitcoin in the coming months.

“#Bitcoin is literally mimicking the price action from last December. I’m not sure whether we’ll get such a deep correction, but I do know that it’s time for #Altcoins to shine again,” he stated on X .

Van de Poppe noted that the global crypto market cap surged from $1.7 trillion to $2.9 trillion within three months during the last altseason, a pattern that may repeat.

Ethereum, the leading altcoin, reached a local high of $4,070 in mid-March before retreating to its current price of $3,700.

Analysts Anticipate a Three-Month Altseason

Another crypto analyst, Milky Bull, who boasts over 81,000 followers on X, echoed the sentiment, predicting that the altseason could extend for approximately 90 days.

“#ALTSEASON lasts about 90 days. From this month till March seems logical,” Milky Bull stated.

According to Blockchain Center’s Altcoin Season Index, the metric currently stands at 65, indicating growing investor interest in altcoins over Bitcoin. The index suggests that 64% of the top 50 cryptocurrencies (excluding stablecoins and asset-backed tokens) have outperformed Bitcoin in the past 90 days.

Altcoin Leaders and Market Dynamics

Among the top-performing altcoins, Hedera (HBAR) has led the rally with a staggering 494% gain over the last three months. However, for the altseason to be officially underway, over 75% of the top 50 digital assets would need to outperform Bitcoin.

Bitcoin currently holds a market dominance of 53.1%, with a market cap of $1.94 trillion. Meanwhile, the altcoin market cap has seen a decline, falling from $1.89 trillion on December 9 to $1.68 trillion, amid broader market corrections.

As the market adjusts, veteran traders suggest that altcoins may continue to gain momentum, potentially driving the next phase of growth in the cryptocurrency sector.