Small-Cap Digital Assets Are Leading The Rally: Is It Officially Alt-Coin Season?
It’s Officially Alt Season As Small Cap Digital Assets Lead The Rally
While Bitcoin has gotten stuck just before $4,000 and not seeing much action, currently altcoins are enjoying the gains. With the leading cryptocurrency is lagging behind, experts are predicting this to be the close of the crypto winter and alt season officially making an entry.
Altcoins See A Rush Of Investors
We already saw how Binance Coin (BNB) made its way to the 7th place. BNB has been no longer tracking Bitcoin price as despite BTC being sluggish, BNB kept on surging as it is up 140 percent since the beginning of the year.
Other cryptocurrencies like Enjin (ENJ) surged 140 percent in a week on the back of the Samsung partnership while Metadium (META) rose 55 percent on the heels of its mainnet launch. On the release of its new stats about Brave Browser that has now over 20 million users, Basic Attention Token (BAT) also saw a good spike. Currently, Groestlcoin, Ravencoin, and Golema are making tremendous gains.
Meanwhile, XRP remained flat during the week while other coins saw a surge despite getting listed on Coinbase and Ripple CEO Brad Garlinghouse’s pushback on JPM Coin.
Mati Greenspan, the senior analyst at eToro, says the market is showing all the signs that it is the altcoins session as he explain,
“Global volume across crypto exchanges is holding steady at around $30 billion per day, yet bitcoin’s volume is less than a third of that figure. Sure, bitcoin exchange volumes are still about double what they were in early February, but some coins like Litecoin, EOS, and BNB have more than tripled their daily volumes in the same time frame.”
The fact that most of the coins traded against BTC with bitcoin being the base currency, it tells the state of the cryptocurrency market when the volume is still down.
“It’s just that, as we pull out of the crypto winter, many traders are looking for more than just stable,” wrote Greenspan while further adding, “This type of action is typical of an alt season as investors rush into whatever’s moving at the moment and try to catch the next wave.”
Altcoins Are Safe As Long As BTC Stays Lethargic
However, it doesn’t mean Bitcoin will keep on taking rest. Altcoins are actually safe as long as Bitcoin is sluggish and once it starts moving all the profits from altcoins will make its way to the flagship cryptocurrency as crypto trader DonAlt says,
“The only reason why I think BTC is important right now is that I expect a big altcoin dump the moment BTC starts making bigger moves. Altcoins are safe as long as BTC stays lethargic. I don't expect that to last though.”
However, DonAlt also says, it is not the “pumpy alt season” for him yet, But if Bitcoin hits $4,500, we will either move back down in which case another test of low $3k’s is expected and if we did break out, it would mean $5.7k would be coming. But in both of these scenarios, things won't be good for altcoins as “a move down in alts” is happening.
According to the crypto trader and investor, Josh Rager, one is safe as long as Bitcoin is trading sideways, “Take out initial money because if bitcoin drops, you're out of luck.”
“It's still a down market and if you're buying altcoins, you take profit. The time to get into an altcoin is when nobody else is talking about it, typically after revealed on CT, it's too late, so save yourself the heartache. Look for coins that haven't popped w/ increasing volume.”