- Bitcoin has recently surged past $66,000 and this has led to increased interest in GameFi and memecoins.
- Analysts warn that while altcoins may thrive, a market correction could occur after significant gains.
Bitcoin has begun the week with renewed momentum, briefly surpassing $66,000. This upward trend has sparked heightened interest in the GameFi and memecoin sectors. Data from the on-chain analytics platform Santiment suggests that the discussion rates of these altcoins have been rising in recent days.
📊 With Bitcoin up to start the week and temporarily jumping all the way above $66K, traders are seeking opportunities in the GameFi and memecoin sectors. Discussion rates among these altcoin segments are showing a continued rise in interest levels.
Historically, this is a sign… pic.twitter.com/RhOzbgmNqt
— Santiment (@santimentfeed) October 14, 2024
This change indicates that more and more traders are opting for a long trade on the market. In the last five weeks, most of the cryptocurrencies have experienced a significant surge. Some of the assets are gaining more traction, given that traders are looking to invest in a given arena that could be lucrative.
These market dynamics indicate that FOMO may persist, especially among altcoins investors. When Bitcoin leads the market to the upside, talking about GameFi and memecoins will only grow. This can be attributed to the traders trying to make a quick buck out of the positive market trend. However, analysts have said that there is a possibility that there may be a market correction after such a rise.
Analysts Predict Upcoming Altcoin Season Based on Historical Patterns
The cryptocurrency market capitalization is over $2.3 trillion, a 1% change within the last day. This growth is mainly driven by a strong performance across altcoins, which indicates a strong possibility of a sustained upward trend in the market.
Based on historical market analysis, predictions about an impending ‘altcoin season’ are rising, particularly towards the end of the year. According to CRG, Bitcoin’s current trend is in line with the patterns observed in the late 2020 cycle. Traditionally, more than 100 weeks after the Bitcoin market bottom, the cryptocurrency goes to new levels, and this is followed by an altcoin rally.
CRG believes that the market has the potential for a large third-year increase. If past cycles are any indication, Bitcoin may be just four weeks away from entering a phase of price discovery, with Bitcoin dominance potentially reaching a multi-month peak within five weeks. At the moment, the Bitcoin market cap dominance is 58% which shows that the market is stable and has no signs of a reversal soon.
The decline in Bitcoin dominance could mean a change in the market structure, which may mean that the market share of altcoins has increased. This is typically the case before the start of an alt season, a period when speculative investments in altcoins rise dramatically.
The Altcoin Market Capitalization Could see a Breakout
Furthermore, Michaël van de Poppe believes that the altcoin market capitalization is set to break out in the next two weeks. He asserts that the environment for growth is gradually being put in place, which could spell potential growth and development in the altcoins.
As noted in our earlier post, the search interest for Bitcoin on Google has declined to 33 points out of 100 as the cryptocurrency fell to $65,885, its lowest level in a year. On the other hand, the search trend for “memecoins” spiked to 77 out of 100, illustrating that more and more people are becoming interested in these digital assets.
