- Altcoins are in an accumulation period that is likely to last through Bitcoin halving.
- Crypto analyst Zero Ika says Bitcoin is more likely to outperform altcoins in the ongoing market cycle.
- Zero Ika recommends scaling from Bitcoin to altcoins towards the end of 2023, presenting an opportunity for profits in 2024.
Investors are accumulating altcoins in the current market cycle and they are likely to keep doing so until the end of the Bitcoin halving in 2024, says Zero Ika, the expert behind the crypto handle @IAmZeroIka. This pattern suggests that an altcoin season looks unlikely this year and more probable in 2024, the analyst said on Twitter, adding that it looks like a good time to scale from Bitcoin to altcoins in order to capitalize on the upcoming opportunity.
Also read: XRP social dominance explodes with likely price rally in the altcoin
Altcoin season is likely only in 2024
Based on the altcoin season index by BlockchainCenter.net, it is currently Bitcoin season. The index calculates whether it is a Bitcoin or altcoin season by evaluating the performance of the top 50 cryptocurrencies by market capitalization.
An altcoin season occurs when 75% of the top 50 coins perform better than Bitcoin over a 90-day period in terms of price and market capitalization.
Alt season indicator
After evaluating the altcoin season index, Zero Ika said that the current picture isn’t likely to change in the altcoin market until 2024.
represents the purest state of the altcoin market since it hasn't BTC and ETH.
— ZERO IKA ️ (@IamZeroIka) July 9, 2023
As said in the previous charts, altcoins are currently facing a big accumulation period which has 460B as range high and 290B as range low.
In my opinion, this is intended to last till… pic.twitter.com/m0cRHqi9ON
The analyst argues that an altcoin season is not likely before the next Bitcoin halving. Based on his analysis, Bitcoin is likely to outperform altcoins until the end of 2023. Zero Ika explains this offers traders an opportunity to accumulate more altcoins with no major movements until the end of 2023.
The expert explained that the plan is to slowly scale in from Bitcoin to altcoins at the end of 2023 or the beginning of 2024. Zero Ika explains that the plan does not take into consideration the possibility of a new Bitcoin all-time high in 2023.
Through a chart that tracks the market capitalization of assets excluding Bitcoin and Ethereum, the analyst proves “mass accumulation” among market participants.
Crypto total market capitalization excluding Bitcoin and Ethereum
As seen in the chart above, there has been accumulation of altcoins, excluding Bitcoin and Ethereum, by traders since mid-2022. According to Zero Ika, the next phase is expansion, starting April 2024, post Bitcoin halving.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.