02 / 12 / 21
Is Alt Season Finally Here? what can we expect with the Alts
2020 was one of the greatest years for crypto in recorded history. The price of BTC, the leading crypto coin, more than tripled from the start of the year to reach an all-time high. In January, the price shot up high to achieve a new high of above $40,000. While there has been a slight pullback to around $38,000, it can still be considered a great year for those who held their Bitcoin for the past year.
A Focus on Alt Coins
Until now, most of the focus has been on Bitcoin. However, 2021 could be the year of altcoins. An analysis of the crypto market charts shows that altcoins are on the rise. Best of all, most of the altcoins have been able to hold most of their gains from November 2020, when the Bull Run set in.
A Look at the History of the Crypto Market
Looking at historical data, all indications are that altcoins could take off soon after Bitcoin helped to push the total market cap over $1 trillion recently. In the past bull runs, when BTC has reached new ATHs, the price of altcoins usually rallies soon after. For instance, Litecoin, which made a breakout in 2014 after BTC prices rallied, recently rallied above its previous ATH of $250. However, it has since dropped back to around $146. Ethereum also seems set to smash past its previous ATH of $1420. It is currently trading at above $1000, which is believed by many to be a key resistance level.
If history is repeated, it could lead to new breakout altcoins. With the arrival of PayPal on the scene, it could be easier for those holding BTC to trade in their Bitcoin holdings for other coins. The result is that it could open the floodgates for cash flowing into altcoins, pushing their prices up to new ATHs.
However, Bitcoin still dominated the crypto market and there is still some way to go before that happens. One way to achieve this is to create use cases for altcoins. For instance, developing solutions that enable wide-scale Ethereum payments or making it easier to pay with Litecoin could go a long way in helping to drive the altcoin rally.
All indications are that the crypto market will not slow down in 2021. Experts predict that before the end of the year, BTC could achieve a new ATH. There have even been suggestions that BTC could go as high as $50K and above. As momentum continues to build for Bitcoin, those who missed the early entry point will no doubt look for other alternatives to make it rich by speculating on altcoin prices.
However, it is worth noting that we could see a return to the massive pump and dump rallies that dominated the crypto market during the 2017 Bull Run. At the time, many people lost their cash to fraudulent schemes that sold them worthless crypto coins.
Investors need to conduct due diligence before committing any of their funds to a project. One way to do this is to check the project behind the altcoin. It can help you to assess whether the price of the altcoin is likely to rise or it is part of a pump and dump scheme.
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