Analysts have identified a key condition for the start of the new altcoin season. According to Hashkey Capital, the first cryptocurrency must surpass the $80,000 mark for this to occur. This means that Bitcoin’s price needs to increase by approximately 18%, given its current price of $67,440.
Experts from the investment company Hashkey Capital stated that a new altcoin season could begin if the price of the first cryptocurrency rises to $80,000. At the same time, analysts believe that Bitcoin’s dominance should reach a level of 62-70%.
According to the firm’s report, the third quarter of 2024 was marked by “bearish” sentiment in the altcoin segment. This category of assets is significantly lagging behind the dynamics of the first cryptocurrency, the company emphasized.
“The situation can be explained by ongoing concerns about a potential economic recession in the U.S., external shocks such as sell-offs by the German government and Mt. Gox, the winding down of operations involving the Japanese yen, and a lack of notable developments in the web3 sector,” the report stated.
Representatives of Hashkey note that during the reporting period, investor interest shifted from DeFi and DePIN sectors towards meme coins and AI tokens. This situation led to a noticeable decline in the performance of decentralized finance and blockchain infrastructure-related tokens.
The Liquid Restaking Token (LRT) sector faced a decrease of 15.77%, while the service infrastructure segment plummeted by almost 19%.
However, representatives of Hashkey Capital still believe in the altseason of 2024. Its likelihood will significantly increase with further growth of Bitcoin, the company is confident.
According to analysts, achieving the current historical high of $73,679 is not enough to launch the altcoin season for the leading cryptocurrency. They stated that the condition for this is to exceed the $80,000 mark. Moreover, Bitcoin’s dominance should remain between 62% and 70%, according to the report.
It is worth noting that at the time of preparing this material, the asset’s price is around $67,440, according to TradingView. Given this, the cryptocurrency must increase in price by approximately 18% to initiate a new altseason. The level of Bitcoin dominance at the time of the article’s publication is 59.13%.
Some experts believe that a new altcoin season has long been overdue and will soon manifest itself fully. For instance, Michael van de Poppe, founder of MN Trading Capital, stated on the social network X (formerly Twitter) about the longest “bear” market in the mentioned segment.
“This is great because a ‘bull’ market is just around the corner, and the results are likely to exceed your expectations,” wrote the crypto expert.
As a reminder, we previously reported that investor and entrepreneur Michael Saylor supported self-custody of Bitcoin following criticism directed at him.