I've been mining and working with cryptocurrency myself since 2011. In that time I've seen a lot in terms of price action movements and just overall trends. One of the trends many have come to love is called the alt coin season and I wrote a little about that in a article recently called Are We Primed For An Altcoin Season?

Today I want to expand on this a bit more to paint a larger picture of what most likely is about to come.

*This article is for entertainment purposes only and is not financial advice. Do your own research before investing.

The Wealth Effect

This is what it's been coined as but what it means is that your primary buyers of Bitcoin and Ethereum start to get tapped out. These are investors that are used to seeing rather large gains of 20%+ on their investments and being that they are well up on their investments they normally get tired of the stagnate growth of bitcoin and start to invest into other areas.

If we look at the price action of bitcoin we can see it's been stagnate now for a while. Since March 2024 the price really hasn't moved much and has been bouncing for the last 6 months. This normally is the consolidation factor and is about the time when the alt coin markets start to kick in.

Large Amounts Being Bought Up

Mining bitcoin is about drying up these days. While there will always be some to mine the emissions is rather low but being that we are in this bounce cycle a lot of people are selling out in my opinion way too early and are fearful of a bear market. But when you look at large companies and governments alike we can see they are simply constantly stock piling more and more bitcoin.

What we are also seeing is the amount of bitcoin moving and changing hands is still rather high. Once this tracks down lower where most people are holding and not selling their bitcoin we will most likely enter a alt coin season. We are starting to see that happen today as roughly 60% or 70% of bitcoin in wallets are simply staying there and not being moved.

Alright so what does this all mean for the altcoin season?

Altcoins

Right now we are in what is known as a consolidation phase. It's when the liquid supply changes hands but then consolidates into the hands of those currently buying it up and playing the hodl game.

This should trigger prices at some point to start scaling upwards and it's expect to hit end of this year into early next year. As we know most major bull markets start to happen October and after with some hints of it in September.

This consolidation factor will start to put upward pressure on the token which should see it hit 70k again and start to track upwards again.

When this happens we will most likely start to see altcoins start to pump as well sparking that alt coin season many of us have been hoping for for a while now.

What are your thoughts on the Altcoin season? Is it coming soon or is this time different with ETFs etc in the mix?

Posted Using InLeo Alpha