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YEREVAN (CoinChatper.com) — The altcoin season 2024 is not here yet, despite the rally across Bitcoin rivals in recent months being everything a bull could hope for. But Bitcoin remained the top favorite, with the benchmark Bitcoin Dominance Index rising to around 52% and now eyeing further control of the crypto market.
Altcoin Season 2024: Is It Gonna Happen?
All the top ten cryptocurrencies by market cap are bearish, including Bitcoin (BTC). Ethereum (ETH), Binance coin (BNB), XRP, and others printed red candles the previous week after early November gains. The reversal effectively shifted traders’ perspective on the possibility of an altcoin season 2024.
Typically, traders tend to turn their attention to altcoins as Bitcoin consolidates. They redirect a part of their portfolio to the tokens with maximum potential to secure short-term profits. In turn, the strategy spikes altcoins’ valuations against the US dollar and Bitcoin itself, lowering Bitcoin dominance and signifying the possibility of an altcoin season no sooner than 2024.
However, traders should be cautious when gauging upside trends in the crypto market. According to the Altcoin Season Index’s neutral reading, the digital asset sector is experiencing a cool-off.
Furthermore, in October 2023, crypto analyst Benjamin Cowen forecasted a significant downturn for numerous altcoins, warning of an “altcoin reckoning” where many digital assets may not survive. In his YouTube video, the analyst asserted that this phase would last until 2024 and that the current altcoins might not be part of a future resurgence.
Cowen also attributes part of the altcoin market’s future to the Federal Reserve’s monetary policies, expecting a “renaissance” for altcoins only after a change in these policies, which he anticipated next year.
SEC’s Classification of Altcoins as Securities
The US Securities and Exchange Commission (SEC) could play a significant role in the further altcoin season 2024 delay. Before doubling down on Binance, the largest crypto exchange globally, the agency sued several crypto trading platforms and assets for failing to register as “securities.”
However, the resolution of the ongoing courtroom battle with Ripple could bring more clarity to the space and define altcoins more precisely. SEC’s possible approval of a Bitcoin spot Exchange-Traded Fund (ETF) could propel the leading crypto, leaving altcoins behind, at least temporarily. Nigel Green of deVere Group agreed as he told CoinChapter that a massive BTC boost might be in the books.
Should SEC approval happen, it would be a landmark moment for Bitcoin. The approval by the financial regulator of the world’s largest economy of this spot ETF would show that Bitcoin is, without any question, part of the global mainstream financial system.
he said.
Additionally, Bitcoin dominance and Ethereum/Bitcoin price action significantly determine whether the altcoin season is here before 2024.
Bitcoin Dominance Rose To 52%
As trader focus shifted from the dropping altcoins, Bitcoin dominance rose to 52% on Nov. 27. Furthermore, Bitcoin’s October lows at $25,000 have raised concerns, with Cowen speculating that another decline in Bitcoin price could have a ripple effect on altcoins.
Moreover, the ETH/BTC trading pair exhibited further risks.
Ethereum/Bitcoin Analysis Hints Altcoin Season 2024
As of Nov 27, ETH/BTC price action stood at $0.054, a 25% year-to-date decline. The price dropped below a significant support line, hinting at further losses.
Cowen also suggested a potential further drop is possible. According to the analyst, historical data supports this, as the ETH/BTC pair often experiences a downward trend from June to December. He predicted a possible fall in the ETH/BTC value to a low point, which could signal the end of the altcoin downturn.
Moreover, according to CoinShares’ latest market report, Bitcoin inflows in the week ending Nov. 19 reached $154.7 million, 25% of the monthly inflow, while Ethereum’s $3.3 million inflows constituted only 5% of the monthly $66 million inflow.
The statistics show that the altcoin season 2024 could still be far, as investors favor Bitcoin over Ethereum. Moreover, Bitcoin’s dominance in investor interest also means that the altcoin bottom is not here yet. Thus, market participants should be careful if they consider buying the dip.
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