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Altcoin Season Remains Far Off the Cards - But Why?

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September 5, 2019 | 

Darryn Pollock |  0 Comments| 

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It has not been since the beginning of 2018 that altcoins have been in a position to attract huge investment and even have commentators suggest that there will be a ‘flippining’ and that Bitcoin will no longer be the dominant coin. 

Currently, the idea of altcoins being in a position of power over Bitcoin seems totally unattainable as the price of the major cryptocurrency continues to slowly gain, and its market dominance is up beyond 70 percent. 

Still though, people are wondering if there will be a chance to invest in altcoins that will be satisfactory to the expansion of their portfolios, and if this is still viable, when will it come? 

The thing is, investors know what to look for to spark an altcoin run, and they do not seem to be forthcoming. 

What is needed for an altcoin season. 

Altcoin seasons have been predicated on a few factors, and none of these have been present in the last few months - especially not in the recent revival of the cryptocurrency market in 2019.

It is known that when Bitcoin’s price consolidates  or trades predominantly sideways traders will take their profits and begin to play larger-cap altcoins, this catalyzes similar movement across other altcoins and could spark an altcoin rally. 

Another factor has to do with Bitcoin reaching new highs. As Bitcoin price notches new 2019 highs, larger cap altcoins from the top-10 usually  move in tandem. That being said, A significant drop in Bitcoin market cap dominance will put the ball in altcoins’ court. 

However, none of these catalysing factors have come to fruition. In fact, the situation for the majority of altcoins has gotten even worse. 

Expert view

Cointelegraph spoke with Cantering Clark, a hedge fund manager and co-founder of Blockroots, to ask about the general state of the market and whether altcoins will recover.

“Altseason was essentially a bunch of new investors entering the crypto space, drawn in by Bitcoin. They saw Bitcoin as being very expensive and the perception at the time was cheaper altcoins are going to be future Bitcoins in the making,” said Clark.

“Newer investors were relatively ignorant of market cap and multiplier effects, they just saw the smaller price and equated a cheaper price to a better deal. In my opinion, altcoins were the epitome of the bubble for 2017 and the process closely mirrored the Gartner Hype Cycle.” 

“Bitcoin is essentially the chosen asset by the industry and it has become the haven of crypto. When Bitcoin does well there are flows that can be capitalized on but this flow cycle has begun to untether and fall apart.” 

“The inverse correlation and positive correlation is no longer a conventional occurrence that investors can consistently rely on. Bitcoin price hasn’t broken it's all-time high, and the next altseason is unlikely to occur until this all-time high is broken.”

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