Cryptocurrency News Today – In the cryptocurrency market, the term altcoin season is used to describe a period when the alternative tokens to Bitcoin surge significantly against the USD while the flagship cryptocurrency remains stable or on a sideways trend. Typically, when the price of Bitcoin is rallying, traders take their profits and invest in altcoins hoping that the altcoins season will follow and they will cash out. While this method has been effective in the past, a reputable cryptocurrency analyst has suggested that the altcoin season is never going to come and traders should stop expecting it.
Cryptocurrency News Today – Cryptocurrency Market Update – Altcoin Season (Altseason) Is Never Going To Come
According to the chief investment officer at Arca, Jeff Dorman, Altseason may never come again like it did in 2017. A few days ago, he took to Twitter to talk about why he doesn’t believe that altcoins will ever surge at the expense of Bitcoin again. In his words;
“It’s time to stop waiting for an “alt season” – that lazy term needs to be retired. The crypto market is WAY more developed now than it was in 2017 or prior, and the notion that a rising tide will lift all boats should not, and most likely will not, happen.”
The analyst didn’t just ditch the idea of altcoin season. He created a thread made up of a vivid explanation. According to him, the cryptocurrency space has developed passed the stage where people will invest in just any altcoin to a stage where they will only invest in altcoins that have true value. He said that altcoins are now divided into two groups. One group, which he referred to as the ‘haves’, is made up of tokens that have solid projects and use cases backing them. The other group, which he referred to as the ‘have-nots’, have not made any real progress since inception and are not backed by any decent project.
In the ‘have-nots’ category, the investor gave two examples of altcoins that haven’t made significant progress or shown true value since inception. Two of the examples he gave are Stellar Lumens (XLM) and Rchain (RHOC). He said that tokens that are in this category can also progress into the winning category if they show value over time. While some people in the cryptocurrency community agreed with Dorman, many others said his point was invalid.
As reported by smarttest.wpmudev.host yesterday, Fundstrat’s Tom Lee predicted that the altcoin season will come soon. He isn’t the only public figure who is waiting for the Altseason. John McAfee has also said that altcoins will soon rule the market even if Bitcoin’s dominance remains significantly higher.
Cryptocurrency News Today – Altcoin Season – Is Altcoin Season Ever Going To Return?
Well, the cryptocurrency space is anything but predictable. So, it’s really not easy to give an accurate prediction of what is going to happen. Since the beginning of the year, however, Bitcoin has mostly been in control of the cryptocurrency market. While altcoins have recorded gains individually, their collective gains are nothing compared to the pace at which Bitcoin has recovered. When the price of BTC tested the $13800 level, altcoins were struggling behind it and BTC’s market capitalization increased to 56% at the time.
What do you think about the cryptocurrency market update? Will Altseason come again? Share your thoughts in the comment section below.