Altcoins are moving slowly, but Bitcoin is making progress as the largest digital asset fell just below $64,000 on February 28.
It pulled back slightly today, but the 25-month high brought BTC within 11% of its November 2021 peak price of $69,000.
The same cannot be said for the majority of altcoins, which remain down more than 50% from their all-time highs.
Additionally, Bitcoin dominance is near a two-year high at 54.6%, meaning there will be no altseason until this starts to decline.
Altseason hopium cultivation
On February 28, altcoin trader “CryptoAmsterdam” looked at the money flow from BTC to large-cap altcoins and then to small-cap altcoins, as observed in previous cycles.
“All assets move in a similar cyclical manner,” he said before suggesting some altcoins that are still lagging but could take a big step forward when the new season begins.
If you missed Bitcoin, don't worry.
Altcoins will do something similar, but the pumps will be even crazier.
Here are 9 Altcoins that seem ready to use ;👇 pic.twitter.com/9g2H4QQ9IT
– CryptoAmsterdam (@damskotrades) February 28, 2024
Crypto trader Mac said its 500,000 followers
“Then alternatives will start pumping like crazy, if you get sidelined, prepare to deploy all your capital.”
Meanwhile, CNBC crypto trader Ran Neuner commented that it was a “new type of cycle” because Bitcoin was no longer sucking liquidity from rising altcoins.
“Bitcoin is powered by Wall Street, and Altcoins are still powered by native crypto funds and retail,” he said.
“Soon, crypto holders will be willing to part with a small percentage of their Bitcoin, and then the altcoin cycle will begin. Be patient. The higher the Bitcoin, the more there will be to fuel the alts! »
Not so fast…
Crypto Youtuber “yourfriendSOMMI” observed that altcoins finished rebounding around the time the US Federal Reserve cut rates in 2019. During this cycle, the rate cut is expected to take place in June.
There could be a few months of sideways or downside action for altcoins this year, which could be followed by a massive surge in early 2025 if history rhymes.
❤💛💚💙
Spooky:
Altcoins finished rebounding when the US Fed cut rates for the first time in the cycle in 2019.
Today, the US Fed is expected to cut rates in June 2024 (60% probability).
We hope that Altcoins will rise in the meantime, but it is possible that this move will be… pic.twitter.com/Sz9Vh21ULw
– your friendSOMMI ❤️💛💚💙 (@yourfriendSOMMI) February 29, 2024
The cryptocurrency market capitalization is currently at its highest level since April 2021, at $2.39 trillion, just under 30% of its peak of $3.08 trillion.
However, it is largely Bitcoin in the driver's seat as most altcoins advance while Big Brother is in tears.
At the time of writing, only Solana (SOL), Dogecoin (DOGE), Toncoin (TON), and Shiba Inu (SHIB) outperformed BTC in the top twenty cryptocurrencies.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).