Altcoins are facing a tough time amidst Bitcoin’s dominance and the delayed listing of an Ethereum ETF. The market is uncertain, with no clear indication of when altcoins might recover. While Bitcoin remains stable below $66K, altcoins are taking a hit, wiping out gains from the recent rally in March. The overall sentiment is bearish, with hopes for an altcoin season fading.
Market analyst Michaël van de Poppe points out various factors contributing to this bearish trend, especially focusing on Ethereum. The leading altcoin has seen a 5% drop in the past week, with a volatile performance throughout the last month. The delay in listing Ethereum ETFs, even after approval, has added to the uncertainty, causing further instability in the market.
Bloomberg analysts are hopeful for a boost if the ETFs are launched on July 2, potentially changing Ethereum’s classification to a commodity rather than a security. Van de Poppe also mentions macroeconomic issues like high inflation and U.S. economic data impacting the Federal Reserve’s decision on interest rates, which affects altcoins negatively.
Bitcoin’s dominance in the market, currently at 55.4%, is putting pressure on altcoins. This dominance has been increasing since December, showing a clear preference for Bitcoin over other cryptocurrencies. However, some analysts believe that this trend could reverse with the potential listing of the Ethereum ETF, sparking more interest in altcoins among investors.
The question remains whether the current downturn in altcoins is temporary or here to stay. Crypto trader ‘cyclop’ suggests that historically altcoins peak 546 days post-halving, indicating a possible buying opportunity before a potential surge. Despite this, the overall altcoin season index has dropped significantly, reflecting a bearish sentiment.
Experts are hopeful for a market reversal, especially with the anticipated listing of the Ethereum ETF. While Bitcoin is trading in a range-bound channel, altcoins continue to decline. A significant decrease in Bitcoin dominance would be necessary for a true altcoin season to kick in, allowing altcoins to outperform.
With all eyes on upcoming developments, particularly the Ethereum ETF, the market is eagerly waiting for a potential boost in the altcoin sector. Amidst all this uncertainty, the strategies of Bitcoin whales during the consolidation phase are also being closely watched.