Will the Crypto Market Crash Before the Next Altcoin Season? Experts Weigh In
Crypto traders are eagerly looking forward to the next Altcoin season, but before that, the market may see significant corrections. The market does not support AltCoins, and any analysts predict that due to retail interest, Memecoin Frenzy and Trump’s tariff war. Currently, AltCoins, outside the top ten, is struggling with its total market cap reaching a three-month low of $277 billion. From the peak of $492 billion in November 2021, this is a steep decline of 77%.
Check the current situation, crypto analyst IL Capo, explain The alternative could drop 20%-40% before the real rally begins, while the meme coins will face greater losses.
A sharp correction before the playoffs?
Il Capo believes that the market is not ready for a comprehensive Altcoin Rally. According to his analysis, Bitcoin can experience a 15%-20% drop, with a target level of about $85,000. However, altcoins are expected to suffer greater losses, with stronger projects correcting 20%-30%, while weaker projects dropping 30%-40%.
Meme CoinKnown for extreme fluctuations, you may see loss depths as high as 50%-60%. For example, recently, a trader made $28 million on February 14broccoliinspired by CZ’s dog. The speculation suggests insider trading, exposing the risk nature of Memecoins. Analyst Nicolai Sondergaard pointed out that Altcoins performed differently, with some departments outperforming others. Coins like Trump are creating problems for established coins.
While traders want to travel smoothly, Capo warns that the market does not act on expectations but follows its cycle. Although painful, this shock may be a necessary step before the market enters its next explosion phase.
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Any hope?
Historical data show that the Altcoin season is usually around 6-9 months when Bitcoin peaks. In 2017 and 2021, major Altcoin rally took place The price of Bitcoin After stable backup. With the next bitcoin halving in April 2024, analysts expect a similar timeline: A powerful bitcoin runs in late 2024 and then moves to altcoins in early 2025.
Bitcoin Advantages, Measures its Total Number Crypto Marketis another key indicator. When the BTC advantage drops below 50%, it indicates that capital is entering altcoins. Currently, BTC has an advantage of about 60.6%, which means the transition has not begun.
To get AltCoins to take off, something needs to be aligned. Bitcoin must first reach its peak and enter a stable phase, allowing traders to spin funds into alternative assets. Ethereum is usually the first to lead, so the surge in ETH/BTC may indicate that a wider market is shifting. Retail hype, especially around meme coins and emerging narratives, will also play a role in driving price increases.
although Raoul PalReal Vision’s CEO said Altcoin’s can take off with the market heading to the “banana zone”, which means Altcoin can lead. But he also warned that investors need patience because it may not be that fast.
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