Glassnode’s Altcoin Cycle Signal is back in the ‘Altcoin Season’ phase. However, the firm warns that Bitcoin’s (BTC) decline is driving a lot of movement.
In a regular market, the press shows that other cryptocurrencies are rising while Bitcoin remains strong and continues to attract buyers without controlling the overall market capitalization.
Bitcoin’s Weakness Strengthens Altcoin Signals
Altcoin Cycle Signal moves above 50 when altcoins outperform Bitcoin. It is now at 86, in the midst of Altcoin Season.
Glassnode said altcoins are running out of stock after almost two years of pressure. Bitcoin, however, it is declining.
“For now, the BTC side is still a lot of work,” Glassnode said.
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Data from BeInCrypto Markets shows that Bitcoin is down 18% in the last month. The crisis comes as risk factors face risks from a hawkish Federal Reserve and growing concerns that interest rates could rise.
Experts at Bank of America He expects the Fed to raise rates three times this year.
Higher interest rates are often seen as cheap because they increase borrowing costs, tighten financial conditions, and reduce interest rates for speculative investors like cryptocurrencies.
However, not everyone is of the same opinion. In a recent study, Grayscale Head of Researcher Zach Pandl said the company’s take was that the Fed should avoid rate hikes.
In this context, easing concerns about monetary tightening could help Bitcoin and other digital assets, especially if many financial markets continue to perform well.
“Bitcoin and gold have been performing well in the stock market since the beginning of the Iran war because, among other things, they are expecting an increase in the monetary policy of the Fed. But if the price increase is low-in line with our initial scenario-Bitcoin can reach the stock market,” blog read it.
This difference is important because Glassnode noted that the recent reading of the Altcoin Season was mainly driven by the decline in Bitcoin.
A recovery in BTC could help validate the token by allowing altcoins to thrive alongside strong Bitcoin instead of without it.
However, high valuations do not guarantee that the market is going up. Experts, including Bitwise Chief Investment Officer Matt Hougan, it said during the ceremony altcoin rallies are over.
“I don’t think we’re going to see a tidal wave lift all the buckets…I think we’re going to see a non-traditional altcoin climate,” he said.
CryptoQuant CEO Ki Young Ju stepped forward. He argued that “the story alone is not enough,” for altcoins. They make sure that altcoins with real money and business models will survive.
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A note Glassnode Flags Altcoin Season Signal as Bitcoin Drives a Move appeared for the first time BeInCrypto.
