Bitcoin (BTC) experienced a significant correction after reaching a new all-time high of $69,324 on March 5. In the meantime, alternative cryptocurrencies (altcoins), including memecoins and AI-themed cryptocurrencies, have outperformed BTC in the past week, sparking a debate about whether the altcoin season has arrived.
The total market capitalization of the crypto market surpassed $2.5 trillion when Bitcoin briefly exceeded $69,000 on March 5, indicating the current bullish momentum. As of now, this figure stands at $2.52 trillion, according to CoinMarketCap.
Altcoins have also shown strength, with their total market capitalization surpassing $1.1 trillion on the same day. This metric measures the combined market value of all crypto assets except Bitcoin. Over the past three months, this value has increased by approximately 64%, from $697 billion to $1.14 trillion on March 7. This is a slightly better performance than the 56% growth seen in Bitcoin during the same period, highlighting the growing investor interest in altcoins.
Large-cap altcoins have outperformed Bitcoin significantly. Memecoins and AI-related tokens have experienced a remarkable rally in the past week, potentially indicating the beginning of the altseason. Memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) have gained 20% and 130%, respectively, within a week. Newer tokens such as Pepe (PEPE), Bonk (BONK), and dogwifhat (WIF) have also seen double to triple-digit gains in the same period. Similarly, AI ecosystem tokens like Fetch.ai (FET), Synesis One (SNS), SingularityNET (AGIX), and Theta Network (THETA) have produced significant gains in the past week. In contrast, Bitcoin has only risen by 8.5% during the same period.
Although the performance of altcoins seems to align with an improvement in the altcoin season index, which indicates the proximity of the altcoin season, it is not yet sufficient to declare the start of the altcoin season. According to the index by Blockchain Center, if 75% of the top 50 coins outperform Bitcoin over the last 90 days, it signifies an altcoin season. Currently, only 69% of the leading 50 altcoins have achieved this. However, a market report by K33 Research suggests that this could change soon, as Bitcoin’s rally towards a new all-time high has doubled its market cap relative to all cryptocurrencies except BTC and ETH. This situation mirrors the altcoin bull run in 2020 before altcoins caught up with Bitcoin’s uptrend.
Independent analyst CrediBULL outlines two possible scenarios for Bitcoin’s performance at the beginning of the altseason. The first scenario involves a mega breakout where Bitcoin surpasses its previous all-time high and quickly doubles in a matter of weeks, with altcoins gaining traction after Bitcoin’s pause. The second scenario is a consolidation phase where Bitcoin revisits its previous all-time high but faces rejection or consolidates at high levels for a few weeks. In this case, altcoins start rallying immediately after Bitcoin touches its prior all-time high.
Founder and CEO of MN Trading Consultancy, Michaël van de Poppe, believes that the altcoin season has not yet begun, as altcoins still have a market capitalization of “40-60%” to reach the 2021 highs above $1.1 trillion. Similarly, Cardano founder Charles Hoskinson suggests that the altcoin season will commence once DOGE surpasses ADA in market capitalization.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.