• JPMorgan analysts predict a potential bottom for the current market correction, expecting Bitcoin and altcoins to bounce back strongly in August.
• The upcoming launch of spot Ethereum ETF could prove to be a major catalyst to trigger the altcoin market rally going ahead.

Along with the strong selling pressure in Bitcoin, altcoins too have been facing the brunt in this broader market correction. However, banking giant JPMorgan believes that the bottom could be potentially in as we could be heading for a major altseason going ahead.

In their latest report published, JPMorgan analysts noted that they expect Bitcoin and altcoins to bounce back strongly in the month of August. the report also noted that there’s a greater likelihood of long liquidations decreasing by the end of this month.

However, amid this ongoing bearish sentiment, JPMorgan had to revise its expectations of net inflows for the year 2024. As per the updated forecast from JPMorgan, the crypto market could see inflows of $8 billion, down from the $12 billion inflows predicted earlier.

However, if the Bitcoin price stages a major recovery during August, there would be a strong recovery for altcoins as well. Contrary to popular belief, the growth of BTC does not necessarily lead to a decline in altcoins, challenging the notion of a Bitcoin season.

After dropping all the way to $53,500 earlier this week, Bitcoin has been on the recovery path. As of press time, the Bitcoin price is trading 1.51% up at $58,094 with a market cap of $1.145 trillion. Bitcoin has delivered a strong show despite the German government selling off its BTC and emptying their wallet on Friday, reported CNF.

When Will the Altcoin Market Rally Kick In?

However, this will not be the case, as altcoins are simply following Bitcoin’s lead. The last time altcoins rallied, signaling the start of an altcoin season in late 2023, they were also following BTC’s cues.

For an Altcoin Season to be confirmed, at least 75% of the top 50 altcoins, excluding stablecoins, need to outperform Bitcoin. Currently, altcoins are far from witnessing an altcoin season, as around 70% are underperforming compared to BTC over the last 90 days.

The only altcoins currently outperforming Bitcoin are Toncoin (TON), PEPE, BONK, Kaspa (KAS), Monero (XMR), and Tron (TRX). All other tokens are experiencing losses.

However, there are a few market developments ahead in line that could potentially trigger an altcoin market rally. Next week, the U.S. Securities and Exchange Commission (SEC) will most likely be approving the spot Ethereum ETF, per the CNF update. This could further propel the ETH price to surge beyond $3,200 thereby setting up the premise for the new bull run to $4,000 and beyond.

On the other hand, Ripple’s native cryptocurrency XRP has given a strong breakout shooting 11% in the last 24 hours while surging past $0.50, as reported by CNF. According to CoinGlass data, XRP Futures Open Interest surged by over 24%, indicating strong bullish momentum in the market. Additionally, XRP’s trading volume jumped more than 73% in the past 24 hours, reaching $2.02 billion.