On March 4, 2024, bitcoin's price surpassed the $67,500 mark, the largest achievement since November 2021. Analysts at K33 Research predict that a number of altcoins will "begin to close the gap" with bitcoin in the future.
According to the analysis, bitcoin's market capitalization doubled the value of the entire cryptocurrency market after the market crash in November 2022. Experts noted similarities to a similar event at the end of 2020.
When will the altcoin season properly arrive?
— K33 Research (@K33Research) March 1, 2024
We discuss the topic and give you the latest week's most important news in This Week in Crypto 👇https://t.co/xyt97xTBq9
In addition, analysts noted that the recent surge in trading of meme-based coins could signal the arrival of the altcoin season. Specifically, some assets such as Dogecoin (#DOGE) and Pepe (#PEPE) rose between 18% and 50% between March 1 and March 2.
According to Coingecko data, Dogecoin (DOGE) rose 91% during the week, while Shiba Inu (#SHIB) rose 173%. Similarly, Pepe (#PEPE) was up 414%, Bonk (#BONK) was up 175%, and Dogwifhat (#WIF) was up 378%.
In addition, K33 Research noted an increase in trading activity on South Korean exchanges. According to its data, the daily trading volume on these platforms reached $8 billion, which is significantly higher than the $1 billion before the bitcoin surge.
Despite the positive outlook, experts warned of the risks associated with investing in altcoins in 2024. They emphasized that the dot-com introduction of bitcoin ETFs is changing the cryptocurrency investment landscape and creating uncertainty about future inflows into smaller assets.
In addition, Swissblock analysts expressed a similar view: market sentiment suggests that altcoin season is imminent. They noted that, according to their analysis, the sector averages "have reached a low level compared to bitcoin and may soon change." Experts also noted that Ethereum breaking through the $3,500 threshold would serve to confirm a turnaround in the trend.
