Crypto Market Alert: Bitcoin Survives, Altseason Begins To Be Seen

JAKARTA - In the midst of Bitcoin sideways, the dominance of the largest crypto asset market has actually decreased significantly. In the past month, BTC's dominance has fallen by about 7%.

Tokocrypto analyst, Fyqieh Almuttaqin, sees that this drop in dominance triggers speculation that the altcoin season (altseason) may start in the near future.

"This year's BTC dominance plot pattern resembles the falling wedge formation which will also appear in 2021, before the massive altcoin rally occurs. It is predicted that Bitcoin dominance could drop by 52% in the next few months," Fyqieh analyzed.

On the other hand, Altcoins such as Ethereum (ETH), Solana (SOL), and XRP have started to show better performance than BTC in recent weeks.

Even Ethereum's average trading volume has surpassed Bitcoin for the first time since late 2022, based on data from Glassnode.

The Altcoin Season Index from Blockchain Center is currently at level 37. signaling that the altseason hasn't officially started yet. However, if this trend continues, altcoins could potentially become the center of attention of investors in the near future.

The market is now awaiting inflationary data Personal Consumption Expenditure (PCE) which will be released in the near future. This indicator is known as the Fed's favorite benchmark in assessing inflation.

If actual data is lower than the expectations of 0.3%, the crypto market will most likely respond positively as it increases the chances of easing monetary policy.

"VOLatility is likely to remain high in the next few days ahead of the release of inflation data," said Fyqieh.

For investors, Fyqieh added, this is the right time to implement risk management strategies, and continue to observe price movements carefully.