Meme coins fizzle out, Bitcoin rises, investors switch gears: Is the 2024 altcoin season here?

Bitcoin (BTC) has long been the reigning champion and rules the digital market. As Bitcoin approaches $72,000 with a 4.70% gain, a subtle shift is in the air – altcoin season.

As Bitcoin takes its throne at $71,808.47, the spotlight turns to the underdogs – the “altcoins.” In the last 24 hours, Bitcoin's trading volume increased by a whopping 76.91% to $64.61 billion, and the crypto market cap reached a hefty $1.41 trillion.

Let’s dive into altcoin season and explore the rising stars here.

Altcoins in action!

While meme coins fade into the background, altcoins like Ethereum (ETH), XRP, Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) are gaining momentum. Investors are reshuffling the crypto deck and looking for speculative assets beyond Bitcoin.

As Bitcoin's influence wanes on meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), altcoins are taking center stage. Ethereum has crossed the crucial $4,000 mark, followed by Ripple (XRP), Cardano (ADA), Avalanche (AVAX), Polkadot (DOT) and Chainlink (LINK).

Litecoin (LTC), Stellar (XLM) and Near Protocol (NEAR) are also seeing gains, driven by anticipation of the Nvidia 2024 GTC conference. Market observers like @CryptoTony_ are predicting a shift from meme coins to promising altcoins.

Also Read: Raoul Pal lists the best altcoins to stack before April

The wealth effect

Bitwise CIO Matt Hougan explains the classic “wealth effect” in the game. Crypto investors satisfied with Bitcoin's gains are now looking for higher returns from altcoins. Wealth is shifting from Bitcoin to altcoins, making them increasingly popular. Historically, once Bitcoin breaks its all-time high (ATH), altcoin season follows within 2-3 weeks. The total altcoin market cap has surpassed $1 trillion, with the ATH at $1.7 trillion.

This altcoin season could be different due to the unique dynamics of the current bull market. Santiment's findings reveal a shift: Bitcoin is reaching new highs and significant capital inflows through spot Bitcoin ETFs. Altcoins are gaining attention given the growing total market capitalization and trading volume of cryptocurrencies.

Mega breakout scenario

The Bitcoin rally, fueled by institutional investment following the spot BTC ETF approval in January, could extend the altcoin season and change market dynamics.

If BTC breaks its previous high and quickly doubles in the dance between altcoins and Bitcoin, a mega breakout can be expected. Altcoins could take a brief backseat during this surge, waiting for their chance to take the spotlight when Bitcoin takes a breather.

What is safe? Altcoins will shine brighter than ever before.

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