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Glassnode's CEO, who goes by the name "Negentropic" on Twitter, believes that a market rotation might be on the horizon. This is due to altcoins seeing the first signs of movement, as witnessed every time the BTC price enters range trading.
The Glassnode CEO offers reasons as to why a market rotation might be approaching: Bitcoin has held its ground, while altcoins have suffered. However, as the Altcoin Cycle Signal suggests, the first signals of the altcoin movement are currently being seen.
Rotation is on the horizon📉
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 12, 2023
🔶Why: Bitcoin has held its ground while altcoins have suffered. However, as the Altcoin Cycle Signal suggests, we are starting to see the first signals of altcoin movement.
🔷Conclusion: The market needs to have an impulse that helps transition… pic.twitter.com/tCOoW0gXqQ
Bitcoin has seen a significant increase in recent months, gaining 80% in 2023 after prices bottomed in late 2022. However, despite the correlation, the majority of altcoins are still suppressed, significantly down from their 2021 highs.
Since altcoins are still in the "accumulation phase," the market capitalization of the industry has been fluctuating for months. Even though a sizable number of tokens have outperformed Bitcoin (BTC) over the previous month, this has not triggered the eagerly anticipated altseason, in which alternative cryptocurrencies outperform Bitcoin.
The market is currently in "Bitcoin Season," according to the blockchain center's Altcoin Season Index.
According to the Glassnode CEO, the market needs an impulse that would help transition from cycle to cycle, as it is not there yet. He continued by saying that the other altcoins are lacking momentum, while ETH is trembling due to a lack of demand.
Here's how XRP, ADA and SHIB might benefit
Given a market rotation, altcoins such as XRP, Shiba Inu and Cardano (ADA) stand to benefit, as funds would rotate from Bitcoin to alternative cryptocurrencies.
This would prompt an altcoin season, a time when alternative cryptocurrencies, often known as altcoins, see their prices spike relative to Bitcoin (BTC) for several weeks or months.
Tomiwabold OlajideDuring this favorable stage in the growth of altcoins, investors looking for more lucrative investment options could exchange their Bitcoin for altcoins that considerably outperform and gain in value.
Arman Shirinyan
Alex Dovbnya