Altcoin Market Decline Expected to Bottom Out by Early 2025
Bitcoin's price, after a mini rally in late October, has corrected below $68k at the start of November. This typical price action influences the crypto industry, particularly altcoins, whose performance is historically linked to Bitcoin's fluctuations. Currently, Bitcoin's market dominance stands at 60%, which restricts altcoin price rallies.
Crypto analyst Benjamin Cowen predicts a significant decline for altcoins, likely occurring in early 2025, followed by a recovery phase. He anticipates that this downturn will manifest around December 2024 or early January 2025.
It looks like the grand finale of the altcoin reckoning has finally arrived.
The altcoin reckoning should be over by December 2024 (2nd week of January 2025 at the latest).
It has been a long journey, and many gave up along the way, but this process was always going to play out pic.twitter.com/WRVUvIHDTt
— Benjamin Cowen (@intocryptoverse) November 3, 2024
Altcoin Market Revisits 2019 Price Action
Cowen analyzed Bitcoin’s price alongside historical trends and concluded that an altcoin market rally is unlikely soon due to current conditions. Data indicates that altcoins are losing traction against Bitcoin, with potential appreciation contingent on Bitcoin experiencing a parabolic run.
Cowen compares the current altcoin market to the 2019 bear market, suggesting that altcoins will bottom out before recovering, similar to the trend observed as they rebounded in 2020.
Analysts Have Mixed Views On Altcoins' Market Performance
Cowen revisited the Bitcoin/altcoin pairing, noting its decline over the past three years, consistent with historical trends where previous "alt-seasons" followed Bitcoin halving events in 2017 and 2021.
BTC Continues Its Crypto Market Dominance
Bitcoin leads the cryptocurrency sector with a market share of 60.5%, stabilizing prices between $68k and $70k. While Bitcoin shows resilience, many alternative cryptocurrencies have experienced declines of 20 to 40%.
Historically, Bitcoin's dominance correlates with altcoin price drops. Experts suggest that a turning point may occur if Bitcoin encounters resistance between 64% and 65.81%. Should this happen, Bitcoin might reach a new all-time high or maintain sideways movement. Conversely, if Bitcoin's market share dips below 50%, a rally for altcoins may follow.
Featured image from Pexels, chart from TradingView