Key Points
- Analysts predict a delay in the alt season due to a potential surge in Bitcoin dominance.
- The launch of US spot Ethereum ETF could potentially trigger the alt season.
Renowned analysts have suggested that the altcoin season might experience a delay due to a potential increase in Bitcoin’s dominance. This prediction comes in light of the anticipated Federal Reserve rate cut in September.
Crypto analyst, Benjamin Cowen, has noted that the current dominance of Bitcoin mirrors the pattern observed in 2019, two months prior to the Fed rate cut. During this period, altcoins struggled to keep pace.
Impact of Ethereum ETF on Alt Season
The potential delay in the alt season could be disappointing news for cryptocurrency investors. The altcoin market experienced significant drawdowns in June, and investors were hoping for some relief.
However, the Altcoin Season Index indicator suggests that the alt season is not yet upon us. The first half of 2024 has been marked as a Bitcoin season. If Cowen’s predictions hold true, this pattern could persist.
Despite this, some analysts believe that the Ethereum/BTC ratio is another key indicator of the altcoin season. According to the Glassnode founders, if the US spot Ethereum ETF starts trading, it could potentially trigger the altcoin season.
The Ethereum/BTC ratio tracks Ethereum’s performance in relation to Bitcoin. After the partial approval of the Ethereum ETF in May, this ratio saw a surge. However, it has yet to break its downtrend, as indicated by the descending channel.
It remains to be seen how the Ethereum/BTC ratio will respond and whether it could potentially kickstart the altcoin season. Therefore, both Bitcoin dominance and the Ethereum/BTC ratio are critical factors to monitor in order to understand the potential impact on altcoins.
