According to Bloomberg analysts, altcoin season could take longer to get to this cycle – here's why
Jamie Coutts, former Bloomberg Intelligence analyst, says an alt season could take longer to occur compared to previous market cycles.
Coutts says Bitcoin (BTC) continues to dominate the crypto market due to its share of total market cap, despite many altcoins seeing breakthroughs.
He says Bitcoin's dominance may last longer than in previous cycles if spot market Bitcoin exchange-traded funds (ETFs) are allowed as huge capital would flow into them, strengthening the crypto king's dominance.
“While altcoins are breaking out of their base pattern, it is still a Bitcoin-dominated market. Still, the offseason move seems imminent. Given the significant flows expected from BTC ETFs next year, this cycle could take longer. Typically, the off-season occurs one to one and a half years after the cycle low, which is around the second quarter of 2024.”
Source: Jamie Coutts/X
He also says that as alt season begins, some projects will emerge stronger than others as adoption of their blockchain technology continues to grow.
“While human behavior remains a constant and the rotation is driven by BTC gains, FOMO (fear of missing out) and greed, we will see the emergence of some clear long-term winners in this cycle; alt-L1s (Layer-1s), L2s (Layer-2s) and DApps (decentralized applications) with product-market fit and growing adoption. Blockchain adoption is on a structural upward trend. Fasten your seat belt.”
The crypto analyst also warns that Bitcoin could see a sudden correction based on the Net Unrealized Profit/Loss (NUPL) metric, which divides Bitcoin investors' unrealized profit or loss by BTC market capitalization.
“Bitcoin is entering the belief/denial zone. From this point onwards, setbacks of 25-30% can occur regularly. Make no mistake, the pressure to sell will impact every owner. However, on-chain, we can see from metrics like illiquid supply/long-term holders, etc. that this bull market started with a much higher core belief than ever before.
This has a lot to do with a much better informed population. There has been an explosion in the study and analysis of central bank, liquidity and macro analysis. Thanks to the contributions of many great thinkers and educators, concepts/knowledge that have been intentionally obscured are now illuminated and understood.”
Source: Jamie Coutts/X
Bitcoin is trading for $43,383 at the time of writing, up 3.1% in the last 24 hours.
Don't miss a thing – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check out the latest headlines
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Comdas/INelson
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.