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Home » Crypto Market News » Altcoin Reckoning: Predicted Downturn Ahead in Cryptocurrency Market

Altcoin Reckoning: Predicted Downturn Ahead in Cryptocurrency Market

  • November 4, 2024
  • 13

The cryptocurrency landscape is facing turbulent times, particularly for altcoins, as a trader predicts a significant downturn before potential recovery. The anticipated “altcoin reckoning” is expected to play out over the next few months, concluding by December 2024 or the second week of January 2025 at the latest. This outlook suggests a continuation of a prolonged decline reminiscent of patterns observed in previous bear markets.

Analyzing historical trends, the current situation mirrors the bear market of 2019, which saw a similar pattern in altcoin market capitalization. The altcoin sector experienced a gradual recovery in 2020, then surged to new heights in 2021. The trader anticipates that this cycle could repeat itself in 2025, contingent on the completion of the current market flush-out.

Notably, the altcoin/ Bitcoin pairs have been in a steady decline for three years, reflecting ongoing struggles within this segment of the market. Previous altcoin seasons, which took place following Bitcoin halving events in 2017 and 2021, have led some analysts to predict a resurgence in altcoin performance as historical patterns appear to resurface.

As for the market dynamics, Bitcoin currently commands 60.5% of the cryptocurrency market share, the highest level seen since March 2021. Analysts suggest that significant movements within the altcoin market are unlikely until Bitcoin ’s dominance drops below 50%.

Recently, crypto markets experienced a downturn, with total capitalization falling to $2.4 trillion as of November 4. Altcoins have suffered the most, with Ethereum and Solana both down 11% since their recent peaks, while Binance Coin has decreased by 8%. In contrast, Bitcoin has shown relative stability, with only a 5.8% drop since reaching over $73,000 last month, maintaining its leading position in the cryptocurrency ecosystem.

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