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After enjoying a mini price in the last week of October, Bitcoin price corrected below $68K to start the first week of November. While this is a normal price movement for Bitcoin, this trend is also impacting the cryptocurrency industry, especially altcoins. Historical patterns indicate that the performance of altcoins is highly dependent on Bitcoin price movement. Bitcoin’s market dominance reached 60%, which affected the performance of the altcoin market and restricted its price increases.
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Cryptocurrency analyst Benjamin Coyne expects altcoins to face a sharp decline, perhaps in early 2025, before they recover. In a post, Cowen said that the market will first see a significant loss in the value of altcoins before signs of recovery appear.
According to Cowen, the altcoin market will face a “reckoning,” and holders and traders can expect a correction to occur by December 2024 or early January 2025.
It seems that the grand finale of altcoin counting has finally arrived.
The altcoin account must expire by December 2024 (second week of January 2025 at the latest).
It has been a long journey, and many have given up along the way, but the process will always continue pic.twitter.com/WRVUvIHDTt
– Benjamin Quinn (@intocryptoverse) November 3, 2024
The altcoin market reconsiders the price action of 2019
In a YouTube video, Cowen forecasts altcoin price movement after reviewing Bitcoin price and historical trends. The founder of ITC Crypto explained that the altcoin market rally will not happen soon due to Bitcoin’s current performance and market conditions.
Data suggests that altcoins are losing ground to the world’s top assets, and altcoins can only appreciate in value if Bitcoin enjoys a parabolic rally.
According to Cowen, the current market condition for altcoins is similar to what happened in the bear market of 2019. Altcoins were bearish during this period before gradually recovering in 2020 and reaching new highs one year later.
Cowen predicts the same story for altcoins in 2025, where altcoin prices will bottom first before they can start rising in price.
Analysts now have mixed opinions on the performance of the altcoin market
In another post, Cowen revisited the pairing between Bitcoin and altcoins, saying that this pairing has been a losing one for three years. He stated that the duo’s performance is in line with historical trends, with the last two “alternate seasons” occurring after the halving in 2017 and 2021.
BTC continues to dominate the cryptocurrency market
Bitcoin continues to lead the cryptocurrency industry, with a market share of 60.5%. According to Cryptographic, Bitcoin is enjoying a two-year high, resulting in market prices stabilizing within a range of $68,000 and $70,000. While Bitcoin continues to show strength, other altcoins have seen their value decline, with some falling by 20 to 40%.
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Traditionally, Bitcoin dominance often coincides with falling altcoin prices. However, many experts say that a potential turning point could occur if Bitcoin reaches the resistance at the 64 to 65.81% range. If that happens, Bitcoin could make another all-time high or move sideways. However, if BTC’s market share drops below 50%, we can expect altcoin prices to rise.
Featured image from Pexels, chart from TradingView