Ethereum

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Bitcoin

April

when

Although Bitcoin recent price plunge has sent several Altcoins on a free fall, with declines ranging from 30% to 70%, there appears to be a beacon of hope set to shine through the murk. 
The recent Bitcoin Halving in April is what the altcoin market needs to recover and surge beyond its highest levels. 
<h2 data-id="8f2bbeb7-6156-4624-83e9-ad4f9cbb6673" data-pm-slice="1 1 []">Bitcoin Halving: A Gateway to Altcoin Prosperity?</h2> 
Bitcoin usually undergoes a Halving every four years, and this major event halves the block reward for miners in half. This fall in supply has normally triggered a bullish rally not only for Bitcoin but also for the altcoin market. 
Crypto analyst Wise Advice <a href="https://x.com/wiseadvicesumit/status/1811396105986343249" target="_blank" rel="noopener nofollow">elaborates</a> that following each Bitcoin halving, there is a <a href="https://www.newsbtc.com/altcoin/analyst-predicts-major-gains-for-these-altcoins-but-warn-against-xrp-and-ada/" target="_blank" rel="noopener ">pronounced potential</a> for altcoins to surge. The analyst particularly noted: 
<blockquote> 
 I know when altcoin season will happen. And I’ll show you it… ‘Halving’ It all depends on it […] When halving happens, after 1–1.5 years, the BTC ATH come And near that, ETH and other altcoins boom. 
</blockquote> 
Historically, this Halving period has seen an explosion of attention for altcoins, driving their prices higher due to the scarcity concerns from Bitcoin following this <a href="https://www.newsbtc.com/altcoin/bitcoin-reach-100000-altcoins/" target="_blank" rel="noopener ">event</a>. 
For example, in the previous Bitcoin Halving on November 9, 2021, leading altcoins, including — Ethereum (ETH) and Solana (SOL), Polkadot. (DOT), Avalanche (AVAX) all recorded a new all-time high. 
For context, ETH peaked at $4,800 on November 10, SOL came in too with its new peak at $250 5 days earlier as revealed by Wise Advice, while DOT’s peak at $55 happened on the 4th of that month, and AVAX peak at $144 occurred later that month on the 21st. 
<img loading="lazy" decoding="async" class="wp-image-629581 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-17.40.35.png?w=860&amp;resize=860%2C671" alt="Altcoins hitting ATH after Bitcoin Halving" width="860" height="671" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-17.40.35.png?w=950 950w, https://www.newsbtc.com/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-17.40.35.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-17.40.35.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-17.40.35.png?w=860&amp;resize=860%2C671 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-17.40.35.png?w=750 750w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
<h2 data-id="a605a483-a583-4cb6-9215-2e8b7d68d1ea" data-pm-slice="1 1 []">How Does The Halving Points To Alts Season Now?</h2> 
As Wise Advice’ post suggests, such patterns underscore a recurrent theme: post-halving, money flows from Bitcoin into altcoins, significantly buoying their <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-analyst-btc-cycle/" target="_blank" rel="noopener ">market positions</a>. 
<img loading="lazy" decoding="async" src="https://pbs.twimg.com/media/GSNefumasAAPvP7?format=jpg&amp;name=medium" alt="Path to altcoin season." width="920" height="883"> 
The analyst explained: 
<blockquote> 
 The more they buy, the higher the price goes. And it makes investors profitable. They sell a part of it and send to Ethereum and other tokens. The market cap of these are way lower, so even the inflow of $100 million can make a huge change (a month before the ATH, Bitcoin MC was in 2.5 times larger than Ethereum.) That’s why Solana and Polkadot’s ATH was 4-5 days faster. Then money goes to even smaller Alts. And they start to overperform big ones. The smaller they were, the bigger the growth was. 
</blockquote> 
Notably, this shift is often reflected in Bitcoin’s dominance index—a metric that measures Bitcoin’s market capitalization relative to the total market cap of <a href="https://www.newsbtc.com/altcoin/altcoins-in-buy-zone-analytics-firm-reveals/" target="_blank" rel="noopener ">all cryptocurrencies</a>. As observed post-halving, a decline in this index signals a growing interest in altcoins. 
Bitcoin <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-falls-56k/" target="_blank" rel="noopener ">dominance</a> is now at 54.60%, a slight decrease from above 55%. Earlier this month, according to TradingView. Notably, the fact that the index is still somewhat high, as it still stands above 50%, suggests that the market still favors BTC. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/SG7nYTZc/" alt="Bitcoin dominance amid the Altcoin market performance" width="2770" height="1496"> 
However, the recent decrease could be the early signs of an emerging altcoin season. Analysts at Glassnode make a similar <a href="https://x.com/Negentropic_/status/1811743865277227142" target="_blank" rel="noopener nofollow">point</a>, linking present market circumstances with those in late 2020 when smaller stocks and riskier assets boomed, pointing towards an impending altcoin season. 
<blockquote class="twitter-tweet"> 
 Rotation coming? 
 Yesterday, we saw how <a href="https://twitter.com/hashtag/Nasdaq?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Nasdaq</a> declined &gt;2% – while <a href="https://twitter.com/hashtag/IWM?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#IWM</a> rallied &gt;3%. 
 This is a clear indication of Rotation. The move to riskier assets. 
 Will we also see this is <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#BTC</a> and <a href="https://twitter.com/hashtag/Alts?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Alts</a>? 
 Well – in November 2020, we had a day just like yesterday. IWM soared and… <a href="https://t.co/WG9pooRxh1" target="_blank" rel="noopener nofollow">pic.twitter.com/WG9pooRxh1</a> 
 — 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) <a href="https://twitter.com/Negentropic_/status/1811743865277227142?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">July 12, 2024</a>
</blockquote> 
Featured image created with DALL-E, Chart from TradingView

Is Altcoin Season Around the Corner? Bitcoin Halving Points to Potential Boom, Analyst Reveals

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