Crypto Expert Predicts Major Altcoin Season as Market Cap Approaches $1.05 Trillion

Market expert Lark Davis asserts that the anticipated altcoin season continues despite recent market corrections. He identifies significant opportunities for altcoins, with a total market capitalization (excluding Bitcoin and Ethereum) around $1.05 trillion.

Key Factors For Impending Altcoin Season

Davis notes that the current altcoin market cap is nearing its previous high of $1.13 trillion from November 2021. He recalls February 2021, when the market cap tested January 2018 highs before breaking through, resulting in an increase from $360 billion to $1.13 trillion—over 200%. If the altcoin market cap surpasses $1.13 trillion again, a substantial altcoin season may follow.

Several factors contribute to Davis's optimism:

  • Bitcoin's Performance: Bitcoin's all-time highs often stimulate interest in altcoins.
  • Political Transition: Donald Trump's upcoming presidency may positively influence cryptocurrency sentiment.
  • Global Rate Cuts: Central banks are lowering interest rates, which typically increases market liquidity.
  • Increased Capital Investment: More cheap capital is entering the cryptocurrency space, facilitating growth.
  • Risk-On Environment: Current conditions favor investment in risk-on assets, ideal for altcoins.

Rally Anticipated As Bitcoin Dominance Rises

Crypto analyst Miles Deutscher supports Davis's view, stating that the real altcoin season has yet to begin. Historical data suggests that altcoin seasons follow distinct patterns rather than random occurrences.

Historically, Ethereum (ETH) has delivered strong returns from January to May, often outperforming Bitcoin, averaging 28% monthly returns versus 3% for the rest of the year. The current environment favors this trend, as Ethereum has historically outperformed Bitcoin by about 20% per month during alt-seasons.

As Bitcoin strengthens, capital is likely to flow into Ethereum and other altcoins. This trend is already evident in Bitcoin's rising dominance, reflecting patterns seen in previous alt-seasons from 2017 and 2021.

Altcoin

Currently, ETH, the largest altcoin, trades at $3,686, down 4.4% over the past 24 hours and nearly 6% over the week.

Featured image from DALL-E, chart from TradingView.com