Skip to main content

Altcoin season is underway

17 Nov, 2023
start-of-the-altcoin-season-main

More positive sentiment in the crypto industry and the rise of Bitcoin tend to be signs that a good time for altcoins is near. In 2023, Bitcoin's price increased 2.3-fold, which was facilitated by talk about the imminent appearance of spot ETFs in the United States and several high-profile defeats in court for the SEC.

Image source: StormGain cryptocurrency exchange

Crypto investors are to track the beginning of the altcoin season since the profitability of low-cap coins often compensates for the higher risks (especially when forming an investment portfolio). One sign of the transition period is increased volume in altcoin trading, which currently accounts for 60% of total trading volume.

Image source: kaiko.com

Among altcoins, Solana inspires the most interest among investors. We previously discussed why that is. On American crypto exchanges, Solana is confidently leading the way, nearly reaching a trading volume of $15 billion in the spot market in 2023. However, it's still outperformed by Ethereum on international platforms.

Image source: kaiko.com

In November, after a year of next to nothing, interest in this coin sharply increased after the investment giant BlackRock filed an application for a spot Ethereum ETF. As a result, the funding rate increased sharply. Note: A high funding rate indicates the dominance of bullish positions in the perpetual futures market.

Image source: coinglass.com

The growing interest in altcoins led to Bitcoin's share decreasing from 54% to 52% in November. However, the trend may reverse if the positive factors don't come to be or don't have the expected impact. Analysts at JPMorgan recently published a sceptical report in which they crushed investors' hopes:

  • The emergence of spot ETFs will only lead to the flow of capital into them from current investment products (for example, Grayscale Bitcoin Trust) but will not create new demand.
  • Court losses for the SEC will not lead to a more pro-crypto regulatory environment. As the regulatory framework develops, the approach to crypto will only become stricter.
  • The effects of halving events are unpredictable, and the reduction in rewards is already priced in.


StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)


Register on StormGain Now

Exchange BTC

Mining icon
Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

Start mining

Mining icon
Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

Start mining

Instrument
Rate
Change (24h)

Сайт та всі послуги StormGain доступні також українською мовою.

Перейти