It is no longer news that Bitcoin recently set an all-time high, decisively smashing through the important $20k psychological barrier. From this point onwards, nothing is impossible for Bitcoin and by extension the overall crypto market.
The most interesting thing about this surge is that it is largely driven by institutional investors who have been putting billions of dollars into Bitcoin. We appear to still be quite far from the FOMO that comes from retail investors. Therefore, we are at the very beginning of the bull market and those who have been predicting a six digit figure for Bitcoin might be vindicated after all.
As expected, the Bitcoin dominance has been rising in the past few days. As I write, it is sitting comfortably above 66%. To go straight to the point, a rising Bitcoin dominance means that the market sentiments are strongly in favour of Bitcoin, perhaps at the detriment of the altcoins.
Little wonder, the crypto market grew by over $75b in a single day and not much growth was seen in the price of altcoins, especially those in the second half of the top 100 rankings on Coinmarketcap.com. We have either seen a tiny or stagnant growth in dollar value while there is a general bleeding in terms of Satoshi values.
The truth is that the trend might continue for much longer, for as long as Bitcoin continues to soar. We might see altcoins outperforming their dollar value while lagging behind in their Bitcoin value.
But the trend will not last forever as the Bitcoin dominance is expected to fall, paving way for a possible altseason. Nobody knows for sure how things are going to play out and this writer will not pretend to know too. But we can be sure that at a point Bitcoin will either begin to retrace sharply or trade sideways.
This will provide some opportunities for altcoins to thrive as Bitcoin investors begin to see opportunities of making greater profits in altcoins. Only then will some good money flow into the altcoins.
Not too long ago, prominent Youtuber and crypto influencer, Lark Davis, stated that the real profit in the bull market will not come from investing in Bitcoin, although the latter remains the driver of the bull market. It will come from investment in altcoins.
And I think that Davis is right. With Bitcoin already trading over $23k, it will need to reach about $230k for anyone to make X10 profit off it. When we take that analogy to altcoins, we realize, and quite indisputably so, that many of this low cap altcoins can easily make X10 profit without even reaching their all-time highs.
In that case, the room for an altseason becomes very large and accommodating for the market players who control the crypto game. Therefore, the question, methinks, is not whether or not there will be an altseason; there is only a question of when. And if we take a look at history, the peak of the altseason will most likely come when Bitcoin has exhausted its fires. Before then, we might see a few altcoins outperforming Bitcoin here and there.
But the real explosive altseason that is reminiscent of what took place in 2017 will not come until such a time when we reach the very peak of the Bitcoin bull run. That might likely be somewhere in 2021. But then, the safest thing to expect is that the alseason will come like a thief in the night.
