Crypto Enthusiasts Foresee Altcoin Season Despite BTC’s Dominance

Since Bitcoin’s creation, many crypto enthusiasts foresee new tokens gaining some relevance even with it. Presently, the digital asset practically owns the industry, with more than 70% of the industry’s market capitalization being from the crypto alone. The sector recently hit an iconic $1 trillion market cap, which shows that it’s growing at lightning speed even with some hurdles the industry faces. With Bitcoin alone having over $700 billion, it means that BTC is still a preferred choice.

One of those hurdles BTC faces is the agitation of a clear regulatory framework for the digital currencies by powerful countries of the world. According to some enthusiasts, the industry’s growth led to the rise of newer coins that are yet to gain significant popularity but might soon win the hearts of the public and become the next BTC.

Investors run to altcoins

Things are rough for the two dominant cryptos, Bitcoin and Ethereum, since their unexpected fall in the past few days. Around December, when the two coins overcame their resistance point, they both climbed and had all-new highs around the same time. Unfortunately, the recent correction shows the unpredictability of digital assets in pricing.

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The fall led to an uproar from crypto enthusiasts, who were expecting higher prices before the incident. Following the fall, new traders predicted more negative corrections and had a massive sell-off to secure their profits before prices drop further. However, the two coins are now appreciating since their corrections, but the fear of value drop made investors search for cheaper alternatives with more significant returns.

This led to a belief that now is the altcoin season, where altcoin establishes some stance in the industry. Based on some statistics and recent drops, BTC and ETH have fallen slightly below their all-time high, but still significantly close compared to other coins. The altcoins are far from their peak, making investors explore their options and invest in them to reach their all-time highs to get large returns. The problem with that is that most altcoins don’t have a stable market, making new pools of investors challenging to retain.

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Outflows from BTC signals altcoin investment

Bitcoin peaked at $42,000 on January 8 that holding its highest market capitalization of the digital asset. But since then, the asset failed to reach that position, which could signal outflows from BTC going into other altcoins. Some Analysis also shows some changes in the price correction of newer coins, different from how they were years ago.

The FOMO(fear of missing out) caused new investors, both institutional and retail, who invest mainly because of the trends. The gains in XRP show that investors are finally noticing other coins that could bring larger returns, unlike BTC and ETH that are so close to their all-time highs.

The high prices of the world’s largest cryptocurrencies is another hurdle to new investors who are not ready to face such risks could invest in smaller assets, thereby mitigating losses when they happen. Altcoins are often two digits, making it easier to buy, unlike Bitcoin and Ethereum.

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Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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