When last fall Bitcoin’s value exceeded $68 thousand. everyone started talking about the approaching altcoin season, or altseason. However, ITC Crypto founder Benjamin Cohen and other analysts have warned about the likely negative scenario and collapse of the crypto market. At the moment, alternative cryptocurrencies (altcoins) continue to fall, and some experts predict that the situation will only get worse.
A well-known analyst under the name Ali saidIt is estimated that there are more than 36.4 million altcoins, while during the 2017-2018 alt-season there were only 3 thousand, and in 2013-2014 there were less than 500. Such a significant increase in supply can significantly affect the market, and not for the better.
Economist Alex Kruger is the same way thoughts:
«Too many tokens. Supply exceeds demand. This illustrates why the expectation of a long alt-season, when everything is rising for a long period of time, is a mistake. Alt-seasons will continue, but they will last from a few days to a few weeks. Adjust your expectations and rebalance portfolios accordingly».
In addition, bitcoin’s dominance in the market has reached levels not seen in almost four years. Rekt Capital analyst reportedMr. Krauthammer said that bitcoin’s dominance recently peaked at 64.3%, after which it stabilized at around 61%. He notes that bitcoin’s dominance needs to reach 71% to start a real alt-season, after which altcoins can start growing again.
There are still too many variables, so further market movements are a mystery. In addition, the actions of Donald Trump’s team are having a major impact.