Meme Coin Rally May Signal Impending Altcoin Season; This Is the Sign to Watch

Bitcoin

(BTC),
the
largest
and
oldest
cryptocurrency,
has
been
leading
the
digital
asset
rally
of
late,
but
there
are
early
signs
of
a
so-called
“altcoin
season”
impending,
when
smaller
tokens
are
outperforming,
analysts
said.

BTC
is
already
near
its
all-time
high
set
in
2021,
hitting
$64,000
this
week
alongside
strong
inflows
into
spot
bitcoin
ETFs.
It’s
gained
48%
since
the
start
of
the
year,
while
the
broad-market
CoinDesk
20
Index
(CD20)
was
up
33%
during
the
same
period,
highlighting
the
underperforming
altcoin
sector.

This
could
soon
change,
though,
K33
Research
analysts
said
in
a
Friday
market
report.

“Judging
by
history,
altcoins
will
start
outperforming
about
the
time
we
are
now,”
K33
wrote.
The
report
noted
that
bitcoin’s
market
cap
has
doubled
relative
to
the
total
value
of
all
cryptocurrencies
except
BTC
and
ether

(ETH)
since
the
November
2022
market
bottom.
The
setup,
say
the
analysts,
is
similar
to
that
of
late
2020
before
altcoins
started
to
catch
up
to
BTC’s
run.

This
week’s
“tremendous”
meme
coin
rally
might
be
a
“possible
early
sign”
of
the
impending
altcoin
season,
they
added.

Read
more:



Meme
Coins
DOGE
and
SHIB
Led
CoinDesk
20
Gainers
Last
Week:
CoinDesk
Indices
Charts

Popular
dog-themed
tokens
dogecoin

(DOGE)
and
shiba
inu

(SHIB)
booked
40%-50%
gains
this
week,
while
newer
entrants
like
pepe
coin

(PEPE)
bonk

(BONK)
and
dogwifhat
(WIF)
doubled
or
more
in
price
during
the
same
period.

However,
the
report
pointed
out
that
timing
the
altcoin
season
is
a
“risky
sport,”
as
the
bitcoin
ETFs
have
altered
the
crypto
investment
landscape,
and
there’s
no
guarantee
that
the
money
flowing
to
bitcoin
will
eventually
trickle
down
to
smaller
assets.
“There
is
enough
risk
appetite
to
send
a
select
few
alts
on
big
runs,
but
we
have
yet
to
see
a
new
wave
of
retail
entering
the
altcoin
arena
to
create
the
rising
tide
that
lifts
all
boats,”
said
K33.

Swissblock
analysts
said
in
a
Friday
market
update
that
“signs
point
to
an
imminent
alt
season.”

According
to
a
chart
shared
on
Telegram,
the
median
return
of
altcoins
versus
bitcoin
appears
to
be
reaching
a
bottom,
and
could
turn
soon,
lifting
altcoin
prices
relative
to
BTC.

The
key
signal
to
look
for
to
confirm
the
start
of
a
period
of
altcoin
outperformance
is
ETH’s
clearing
the
$3,500
price
threshold,
Swissblock
said.