The crypto market has seen significant inflows over the past 30 days, a trend that has strengthened significantly over the past two weeks. Interestingly, most of the inflow has dealt with Bitcoingiving the leading cryptocurrency a new look all-time highs, back to back.
Ethereum, although late to the party, has done just that began to receive a huge influx in the past 48 hours. As such, the leading altcoin has soared by about 24% in the last seven days. This allowed the price to rise above $3,000 for the first time since early August. This impressive Ethereum price rally is throwing a spotlight on the rest of the altcoin market, especially the idea of an altcoin season.
Altcoin market cap on the verge of a breakout
The combined market capitalization of altcoins, which represent all cryptocurrencies except Bitcoin, has increased dramatically since early November. Initially according to a TradingView chart shared on social media platform X by crypto analyst Captain Faibik, the altcoin market has experienced an increasing trend from a low of $860 billion in November on November 4. At the time of writing, this market cap stands at $1.095 trillion, representing a 27.3% increase in the altcoin market in less than a week.
Total crypto market cap at $2.66 trillion on the daily chart: TradingView.com
This upward trend has come to a halt of a broader influx in the crypto market, has seen the altcoin market cap now break out of a declining trendline, as measured from the March 13 high of $1.267 trillion. With this in mind, crypto analyst Captain Faibik noted that the “altcoins party hasn’t started yet,” hinting at the possibility of an altcoin season coming soon.
Interestingly, the analyst foresees further inflows of $349 billion into the altcoin market before the end of the year, which would cause a further 31.41% increase from the declining trendline. Should this prediction come true, altcoin market capitalization will reach a new high in 2024.
Image from X: Captain Faibik
Altcoin season closer than before
CoinMarketCap data shows that the Altcoin Season Index currently stands at 38 out of 100, still a notable distance from the 75 threshold needed to declare an official altcoin season. However, recent trends and momentum within the altcoin market indicate that the start of an altcoin season may be closer than previously expected since the beginning of the year. An altcoin season is defined by a period in which altcoins begin to outperform Bitcoin in profits as investors begin to diversify their portfolios.
At the time of writing, most major market cap altcoins are outperforming Bitcoin both within a 24-hour timeframe and within a seven-day timeframe. Ethereum, Solana, Dogecoin, and Cardano are currently up 30%, 25%, 70%, and 52% respectively over the past seven days, compared to Bitcoin’s 16% gain in the same time frame.
Featured image from TheStreet, chart from TradingView