The crypto market trades in the clutches of bears as Bitcoin struggles to hit $50K. All other top altcoins on the chart are down by an average of 5%. The sideways trade continues for the market.
A famous blockchain analyst is investigating whether another “alt-season” could be on the horizon as the crypto markets meander sideways.
In a recent newsletter, IntoTheBlock’s head of research Lucas Outumuro observes that Ethereum’s (ETH) price against Bitcoin (BTC) has recently reached a 42-month high.
He notes that the Last 2 times when Ethereum set new yearly highs, were followed by “periods of high growth” for ETH and smaller-cap altcoins.
He also says that If ETH/BTC remains above 0.08, it could signal a shift in risk appetite in the crypto markets.
Non-Bitcoin crypto assets have historically averaged 38% gains in December, compared to 21 percent for Bitcoin, according to the blockchain researcher.
However, he says as many in the market may be anticipating bullish price action as a result of this historical precedence, but given that the stock has already gained by 30% in Q4, this may already be priced in.
Altcoin Effect on Diverse Industries
He further explains that, Given the diverse industries of different altcoin initiatives, the researcher believes that “Alt Season” is an outmoded phrase, he added.
Throughout the last bull market, different sectors within crypto developed their own trends, resulting in reduced correlations across longer time periods.
This was evident with DeFi tokens in the summer of 2020, NFTs in the summer of 2021, and metaverse-related tokens more recently.
In the end, this could mean that if an ‘alt season’ occurs, it will benefit some industries more than others.