Looking back at the last market cycle, altcoins and Bitcoin pairs experienced a capitulation in June 2019 prior to the United States Federal Reserve making a decision to cut interest rates. Fast forward to the present, the chart pattern for the current cycle mirrors that of the past. If history is any indication, a similar final flush out of altcoins may be on the horizon before this month’s Fed rate decision on June 12.
Despite the recent drop in the crypto and stock markets following U.S. jobs data last week, there is still optimism within the cryptocurrency community. Analysts like ‘Moustache’ have drawn comparisons between the last market cycle and the current one, noting the structural similarities and emphasizing that while history doesn’t repeat itself, it often rhymes. Other experts, such as Michaël van de Poppe and ‘Mister Crypto,’ have expressed bullish sentiments and anticipation for a potential altcoin rally in the near future.
Bitcoin Dominance and Altcoin Rally
One key indicator of an impending altcoin rally is Bitcoin market dominance. Currently standing at 55.2%, Bitcoin dominance has seen a significant increase since the beginning of the year. However, in order for altseason to truly kick off, Bitcoin dominance will need to drop below the 50% mark, which doesn’t seem likely to happen anytime soon. While many eyes are on Ethereum as a potential leader of the altcoin rally, recent drops in ETH price have caused some uncertainty in the market.
As of now, altcoins are facing a tough time in the market, with several major coins experiencing significant losses. Toncoin (TON), Shiba Inu (SHIB), and Near Protocol (NEAR) are just a few examples of altcoins that have seen heavier losses recently. The overall sentiment in the market is one of volatility and potential pain, especially if the Federal Reserve decides to maintain interest rates at the current levels next week.
The future of altcoins in the crypto market remains uncertain. While some analysts are optimistic about a potential altcoin rally in the near future, the current market conditions suggest that more volatility and losses may be on the horizon. Investors and traders should proceed with caution and closely monitor the developments in the market to make informed decisions.
