Altcoins Market Cap Surpasses $840 Billion, Approaching May 2021 High
Bitcoin's price surpassed $90,000, prompting Altcoins to reach new highs. This movement has reclaimed a significant two-year level, potentially leading to a retest of 2021’s peaks, with analysts suggesting the onset of an Altseason.
Altcoins Market Cap Reclaims 2022 Levels
The total cryptocurrency market capitalization increased to $3.36 trillion over 21 days, driven by the US elections on November 5. Bitcoin's price rose by 40%, reaching an all-time high (ATH) of $99,645.
Altcoins have also shown strong performance, with tokens such as Cardano (ADA) and XRP (XRP) surpassing $1. Solana (SOL) and SUI (SUI) achieved new ATHs, boosting investor sentiment for further gains.
Ethereum (ETH) regained the key support zone at $3,300, contributing to overall optimism in the Altcoins sector. The market cap for Altcoins reached a two-year high, reclaiming critical levels.
Excluding Bitcoin and Ethereum, the total crypto market cap surpassed $788 billion, while the Altcoins market cap broke above $840 billion, a level not seen since April 2022. Alts maintained this range despite market corrections, nearing May 2021’s resistance of $984 billion, ahead of the ATH of $1.13 trillion.
Altseason To Start Soon?
Bitfinex’s Alpha report indicates that Altcoins have experienced their “largest through-to-peak move” since April 2021, with a 23.2% increase signaling heightened investor interest and moving away from previous bear market levels.
This shift suggests capital rotation from Bitcoin to Altcoins, typically marking the final stages of a bull market where Altcoins outperform Bitcoin collectively.
Crypto analyst MikyBull noted that Altcoin dominance climbed above the trend ribbon, reaching 10.37%. This breakout indicates potential outperformance in the coming weeks, supported by a multi-year cup and handle pattern observed in the Altcoins chart.
MikyBull anticipates that Altcoins will demonstrate their full potential from December to March 2025 following the recent breakout.
Bitfinex cautioned that short-term gains for Altcoins may face resistance at May 2021 levels. However, breaking above the $984 billion resistance could signal continued upward movement.
Analysts also warn that a significant correction in Bitcoin could disproportionately affect Altcoins, predicting a possible ranging period following a week of high liquidation numbers for both long and short positions in Altcoins.
