The price of Bitcoin has surged past $68,000, sparking discussions about the arrival of the altcoin season, or altseason, as investors dream of "uptober." However, is the rise in BTC the initial signal for other cryptocurrencies to take off?
Analysts at Hashkey Capital believe that for a new altseason to begin, Bitcoin's market dominance must rise to 62-70%. The price of Bitcoin needs to increase to $76,000-$108,000. According to an optimistic scenario, an altcoin season is more likely if Bitcoin's price exceeds $80,000. Additionally, the bitcoin-to-gold ratio should rise above the current level of 23, and altcoin premiums must re-emerge
Altcorn premium refers to a situation where prices for altcoins on certain markets or exchanges are higher than global prices. This indicates 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 relative to the total market capitalization of all other cryptocurrencies, stands at 59%. Crypto analyst Willy Woo believes that an approach of this metric to 60% may signal a weakening of altseasons.
According to his findings, in future cycles, the earnings from altcoins will not be as significant as before, which will alter traders' strategies.
He noted that cryptocurrencies with medium and low market capitalization will "definitely" be "pumped" after Bitcoin's price jumped to $68,000, as "investors seek yields that are higher on the risk curve."
Additionally, Woo suggests that the current third altseason is largely focused on meme coins, which he labeled as "mockery of the crypto space."
Interestingly, according to preliminary forecasts by Bitcoin analyst PlanB, if Bitcoin hits $70,000 in October and Donald Trump wins the presidential election in November, this could be a turning point. These and other factors may propel the price of BTC to $1,000,000 as early as next year.
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