Key Takeaways
- Profits from Bitcoin’s rally could soon find their way into altcoin markets.
- Recent memecoin gains of over 50% suggest that altcoin season is already here.
- The Bitcoin Halving event and Ethereum Dencun update are major contributors to the current bull run.
The market is abuzz with hype and bullish positivity as major players Bitcoin (BTC) and Ethereum (ETH) stoke the flames of fortune, leading many investors to wonder when, or if, realized profits will trickle down into altcoins, and officially start altcoin season.
Following a fresh flood of institutional capital into spot BTC exchange-traded products in the United States, hype surrounding Bitcoin’s upcoming Halving event, and the exceptional performance of memecoins such as Dogecoin (DOGE), Bonk (BONK), Pepe (PEPE), and others, some are beginning to speculate that altcoin season may be just around the corner.
What will Trigger the Altcoin Season?
A report from K33 Research may have discovered a rather important pattern that suggests a coming rise for the altcoin market.
K33 Research analysts note that as BTC pushes toward its all-time high again, its market cap has also doubled relative to all other cryptos excluding ETH. Drawing a comparison to the altcoin bull run of 2020, analysts suggest that this current trend echoes the patterns of past altcoin seasons.
“Judging by history, altcoins will start outperforming about the time we are now… There is enough risk appetite to send a select few alts on big runs, but we have yet to see a new wave of retail entering the altcoin arena to create the rising tide that lifts all boats.”
Bitcoin Halving and Ethereum Dencun Update
Two major events are contributing to the upward market trajectory, notably the upcoming Bitcoin Halving event which will take place toward the end of April 2024, as well as the Ethereum Dencun update that takes place on March 13, 2024.
To begin with, the Bitcoin Halving event has historically been preceded by solid market gains. After the halving, BTC gains are typically realized and then pumped into altcoins, triggering a bullrun.
Furthermore, Ethereum, the top altcoin ecosystem, is set to release a major update (Dencun) as part of the Ethereum 2.0 narrative that will see the entire network overhauled into a more powerful, efficient, and scalable version of what it once was.
Ethereum-based tokens will relish in every gain that ETH makes, especially as it pushes past the $4000 toward its all-time high. Similarly to BTC, these profits are typically scooped and pumped into altcoins. A
Naturally, the combination of both BTC and ETH having two very important historical events taking place so close together is another reason why investors are excited.
Other Factors
Interestingly, memecoins such as FLOKI, DOGE, and PEPE have registered gains upwards of over 50% in the past 7-day period, suggesting that altcoin season may already be here.
K33 Research noted that the “massive” memecoin rally may be a “possible early sign” of this upcoming altcoin season, but noted that the timing could be a risky area as institutional crypto products such as BTC ETFs have changed the investing landscape.
However, according to K33 CEO, Torbjørn Bull Jenssen, BTC is set to appreciate over the next two years. With events such as the Bitcoin Halving increasing token scarcity, increased inflows into Bitcoin ETFs driving up institutional adoption, and other factors fueling the premier tokens’ meteoric rise, it can be assumed that the altcoin market is just a few steps behind.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
