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“The disappointing predictions”: When will altcoins show rapid growth?

Can altcoins rise under current conditions, and what’s stopping the segment from overtaking the top cryptocurrency in yield?

The situation in the alternative currency market

The total capitalization of the cryptocurrency market continues to decline amid the fall of bitcoin and other digital assets. On January 10, the indicator fell below $2 trillion for the first time since September 2021. This happened after bitcoin price hit $39,500. In one month, the asset fell by 10%.

Against this backdrop, altcoins continue to get cheaper. For example, Ether’s price fell 20% in one month, Binance Coin fell 13%, and Solana’s value fell 24% in the past four weeks.

Individual projects show growth despite overall market dynamics. For example, on January 16, the NEAR token reached the all-time high above $20, rising 96% in one month. This happened against the background of the $150 million investment in the project.

Experts explain what is currently happening in the alternative currency market and whether to expect the arrival of the “altcoin season” in a close future.

Not a prolonged fall

The current market situation should not be seen as the start of a prolonged fall, said senior analyst at 8848 Invest Victor Pershikov. According to him, there is no fundamental negativity in the crypto-asset market and the lack of growth is due to the tightening of monetary policy by the Fed. Due to the actions of the regulator, many investors have “reduces their appetite” for digital assets, the analyst noted.

“Now the market is dominated by the scenario risk-off. In the conditions of continuous price growth in the commodity and equity markets, crypto market participants do not want to take risks, preferring more reliable tools”, a expliqué Pershikov.

No time for altcoin growth

The start of the “altcoin season” against the background of the current market situation is practically excluded, according to a senior analyst at Bestchange.ru, Nikita Zuborev. In his opinion, the rapid growth of altcoins begins at the end of bitcoin’s bull phase.

“At some point, the growth rate of bitcoin slows down and investors prefer to exchange it for altcoins, which puts even more pressure on bitcoin, but causes the price of altcoins to rise”, explained the analyst.

According to Zuborev, at present, bitcoin does not have the necessary safety margin to resist capital outflows into altcoins. In the event of capital flows to alternative currencies, the price of bitcoin will start to decline, which will cause the entire market to fall, the analyst claims.

Outlook for the year

In 2022, the altcoin market is able to surpass the growth rate of bitcoin, Pershikov predicted. According to him, it is likely to happen in the second half, since the first months of this year the market will experience a wide range of growth and price corrections.

According to Zuborev, the beginning of the “altcoin season” true will depend on the dynamics of bitcoin. If the first cryptocurrency manages to reach an all-time high before the middle of the year, there is a good chance that alternative currencies will see significant growth.

“Otherwise, market forecasts are disappointing, and bitcoin as well as altcoins will continue to move ‘sideways’ until the second half of 2023”, Zuborev said.

Thus, most experts agree: the outlook for the altcoin market depends on the dynamics of bitcoin. We will see what the fate of alternative currencies will be this year. However, we suggest that you stay on Cointribune so as not to miss any news concerning the evolution of the crypto market!

Source : thecoin.news

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Source: Cointribune

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