The next altcoin season might be near, as one of the year’s most anticipated events occurred yesterday with the launch of the Ethereum ETF.
This scenario could mean profits for altcoin enthusiasts, but Bitcoin’s proximity to an all-time high might pose a challenge.
Altcoin Season Begins?
The altcoin season had been largely hinged on the launch of the spot Ethereum ETF, which went live yesterday. Now, investors await the moment altcoins exceed Bitcoin’s demand, led by ETH.
The ETH ETF launched with over $10 billion in assets under management, with $9.2 billion held by the Grayscale Ethereum Trust (ETHE) alone.
This is expected to increase massively as inflows rise, which could push Ethereum’s price above $3,500. ETH’s rise would be critical in driving inflows into the crypto market, excluding Bitcoin.
The combined market capitalization of assets other than BTC is currently at $1.05 trillion, moving within a flag pattern. A flag pattern is a technical analysis chart pattern that resembles a rectangular flag. It indicates a brief consolidation before the previous trend resumes.
The pattern’s target, calculated by its pole, suggests the breakout will likely lead to a 44% rise. This places the potential rise at $1.56 trillion, which would mean a rise of $510 billion.
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While practically this target is unlikely, it does paint a bullish scenario ahead for the altcoin market.
Bitcoin Season Go Away
The altcoin season index highlights that the current market conditions are supporting an active Bitcoin season. For BTC dominance to decline, altcoins would need to attract inflows that surpass those going into Bitcoin.
Read More: Which Are the Best Altcoins To Invest in July 2024?
It might take some time for the market to see a change, as the macro-financial conditions are still uncertain. The estimated arrival of altcoin season would likely extend to the end of August.
The post Spot Ethereum ETF Launch to Trigger the Altcoin Season appeared first on BeInCrypto.
