Analyst predicts altcoins to reach their lowest point in early summer prior to a bullish surge

According to market analysts, the cryptocurrency market, excluding Bitcoin (BTC), could reach its local bottom in June, signaling the start of the next altcoin bull cycle. Rekt Capital, a popular crypto analyst, suggests that based on historical chart patterns, altcoins may find their local price bottom around the beginning of June. Despite a recent slump in the market cap of altcoins, which fell over 21% in the past month to $265 billion (excluding the top 10 cryptocurrencies), the market cap is still up over 24% year-to-date and over 167% in the past year. Altcoin sentiment is closely correlated with Bitcoin price, and the market could see a local bottom in June due to decreasing inflows from US spot Bitcoin exchange-traded funds (ETFs). However, an altcoin bull run would first require Bitcoin price to break out to the upside. Aurelie Barthere, a principal research analyst at Nansen, suggests that BTC price has been consolidating since the halving and charts indicate the formation of a multi-month bull flag for new all-time highs later in the year. While finding a local bottom wouldn’t necessarily result in an altcoin rally, altcoin prices could rise due to the positive year-over-year M2 money supply, signaling a potential increase in investors seeking hedges against inflation or alternative investments. As the money supply in the US increases, some of the new supply could flow into altcoins and memecoins, contributing to the beginning of the “altszn.”