Cryptocurrency enthusiasts have been waiting for an alt-season that seems far from happening, at least in the coming weeks. Bitcoin (BTC) has reached the highest market dominance since the beginning of 2017. However, Cantering Clark, a recognized hedge fund manager and the co-founder of Blockroots, said that a new alt season could start if Bitcoin’s dominance rate falls to 40%.
Cantering Clark Analyses The Crypto Market
During a conversation with Cointelegraph, Mr. Clark talked about Bitcoin, the whole cryptocurrency market and about a new altcoin season in the future. Bitcoin reached $13,750 earlier this year, the highest price recorded by Bitcoin since its all-time high of $20,000 on December 2017.
However, during the last two months, Bitcoin was not able to sustain its price and it was traded under $10,000 several days. But surprisingly, altcoins underperformed Bitcoin since it started this bull run earlier in 2019.
Regarding the alt season experienced by the market in 2017 and the beginning of 2018, he said that this was essentially a bunch of new investors entering the crypto space. However, these individuals decided to invest in altcoins because they considered that they had larger possibilities of succeeding and providing larger returns than Bitcoin.
However, many digital assets remain 95% down from their all-time highs or even more, while Bitcoin surged 300% since it bottomed in December 2018 after a bear market. Thus, Mr. Clark considers that altcoins closely mirrored the Gartner Hype Cycle.
About Bitcoin, he said that this is the chosen asset by the industry and it has become the haven of crypto. In general, when Bitcoin does well, there are flows that can be capitalized by other assets. However, this cycle started falling apart during the last months.
Regarding a new alt season, Clark commented:
“Bitcoin price hasn’t broken its all-time high, and the next alt season is unlikely to occur until this all-time high is broken.”
In addition to it, he said that if Bitcoin’s dominance rate dropped to 40$ this would probably bring on an alt season. However, he said that this is something that cannot be predicted right now.
At the time of writing this article, Bitcoin has reached a dominance of 70.7% and a price of $10,616. While Bitcoin has a market capitalization of $190 billion, Ethereum (ETH), XRP, Bitcoin Cash (BCH) and Litecoin (LTC), have a total market capitalization of almost $40 billion.
Source: Read Full Article