It appears to me that Bitcoin might finally be taking a little breather. While most exchanges I looked at did not show it according to Robinhood Crypto Bitcoin crossed $19,000 briefly before retreating back to the $18,900s range. If Bitcoin is finally taking a break and people begin looking at other places in crypto to put their cash it begs the question of how will altcoin season be?
Previous altcoin seasons have tended to be pretty long however I expect this to change. Bitcoin is were companies are finally putting their money and so Bitcoin will now have that institutional draw for now on. This mean that as soon as people back off of Bitcoin and the price retreats some investors and companies will look to pile in then. I expect to see more brief altcoin season where prices run and run before the focus goes back to Bitcoin.
Another huge difference is with the amount of altcoins there now are. The last huge altcoin season in 2018 had much fewer easily assessable coins but now that has changed. On top of decentralized exchanges becoming bigger and easier to access centralized exchanges like COINBASE now offer many altcoins that they did not offer in January of this year. With a vast number of larger named projects that people believe in this will further water down the moonshot impact that happened last time.
I feel it is safe to say that gone are the days, for the most part, that someone can buy several hundred coins under a dollar and see the explosion previously seen. Chainlink, Tezos, and even XRP are more established and due to this people already have a basic idea of what it is worth. Now huge price run ups can still occur but the odds are highly against seeing 100%+ returns.
This isn’t to say there is not any money to be made in these runs there is fantastic money to be made! The gains though will be muted though and I like to think about it like stocks. Do some stocks hit crazy 100%+ returns yes but given the amount of stocks traded is it that large of a percentage and that answer is no.
The altcoin season could be popping up right now with the huge price increases we have seen the last 24hrs and it will be interesting to see if that continues into Sunday. If it can maintain the momentum into Monday that will be a huge indicator for the market on if Bitcoin is still making its run or if it is in fact altcoin season!
