The price of bitcoin has surpassed $68,000, and everyone is talking about the approaching altcoin season. Because investors dream of uptober. But is BTC’s growth the first bell to ring for other cryptocurrencies to jump?
Analysts at Hashkey Capital believe, that for the start of the new altseason, BTC’s market dominance should rise to 62-70%. The price of bitcoin is expected to rise to $76,000-$108,000. According to the optimistic scenario, the altcoin season is more likely if the price of bitcoin exceeds $80,000. Also, the bitcoin-to-gold ratio should increase above the current level of 23, and altcoin premiums should return
An altcoin premium is a situation where altcoin prices in certain markets or exchanges are higher than global prices. This indicates an increased demand for altcoins among local investors. on South Korean exchanges.
Currently, the bitcoin dominance index, which reflects the share of BTC’s market capitalization in relation to the total market capitalization of all other cryptocurrencies, is 59%. Crypto analyst Willie Wu believes, that approaching 60% of this figure could mean weakening of the altseasons.
According to his findings, in future cycles profits from altcoins will not be as significant as it was before, which will change the approach of traders.
He noted that mid- and small-cap cryptocurrencies «will definitely» be «pumped up» after the price of bitcoin jumped to $68,000 dollars as «investors seek returns that are higher on the» risk curve.
In addition, according to Wu, the current 3rd altseason is largely centered on memecoins, which he called «a piss-take on the crypto space.»
Interestingly, according to a preliminary forecast by Bitcoin analyst PlanB, if Bitcoin reaches $70 thousand in October and Donald Trump wins the presidential election in November, this could be a turning point. These and several other factors may raise the price of BTC to $1,000,000 next year.
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