Altcoin Market Decline Reaches Final Act, Bottom Expected In 2025–Analyst

by

As a seasoned crypto analyst with years of experience in navigating the volatile world of digital assets, I have learned to expect the unexpected but also recognize historical patterns. After observing Bitcoin’s recent price correction and its impact on altcoins, I find myself cautiously optimistic about the near future of the altcoin market.

As a researcher studying the cryptocurrency market, I’ve observed a correction in Bitcoin‘s price after a brief surge at the end of October, dropping below $68k as we enter November. This type of fluctuation is common with Bitcoin, but it does have far-reaching effects on the crypto industry, particularly altcoins.

In a recent post, crypto expert Benjamin Cowen predicts that altcoins could experience a significant drop in value, likely around early 2025. According to his analysis, this decline is expected to occur before any signs of recovery become apparent in the market.

As predicted by Cowen, the altcoin market is expected to experience a significant event or adjustment, with this potential correction happening between December 2024 and early January 2025. This forecast affects both holders and traders of these digital assets.

It looks like the grand finale of the altcoin reckoning has finally arrived.

The altcoin reckoning should be over by December 2024 (2nd week of January 2025 at the latest).

The path we’ve taken has been lengthy, and some chose to leave us behind, yet we knew all along that this course of action would ultimately unfold as planned.

— Benjamin Cowen (@intocryptoverse) November 3, 2024

Altcoin Market Revisits 2019 Price Action

In a recent YouTube video, Cowen shared his forecast on the future price movements of altcoins. After examining Bitcoin’s current state and past patterns, he suggested that a significant increase in the value of altcoins may not occur immediately given the existing Bitcoin market situation and overall market circumstances. The founder of ITC Crypto provided this analysis.

It appears from the data that altcoins are gradually being overshadowed by the leading asset, and their value becomes more significant only when Bitcoin experiences a steep upward trend.

As per Cowen’s analysis, the current state of altcoins resembles the bear market experienced in 2019. During that time, altcoins displayed a downward trend, but they eventually started to recover in 2020 and reached new peaks approximately a year later.

In simple terms, Cowen predicts that the trend for altcoins in 2025 might mirror the past—their prices are likely to hit their lowest points initially before they can begin a price surge.

Analysts Now Have Mixed Views On Altcoins’ Market Performance

In another post, Cowen revisited the Bitcoin/altcoin pairing, saying that this pairing has been losing for three years. He stated that the pairing’s performance aligns with historical trends, with the last two “alt-seasons” happening after halving in 2017 and 2021.

BTC Continues Its Crypto Market Dominance

In terms of the crypto world, Bitcoin remains dominant, holding approximately 60.5% of the market share. As per Cryptographic reports, Bitcoin’s value has reached a two-year peak, maintaining prices between $68k and $70k. Despite Bitcoin’s robust performance, many other digital currencies have experienced declines, with some experiencing drops ranging from 20% to 40%.

Typically, when Bitcoin’s influence is high, prices of alternative cryptocurrencies tend to drop. But some analysts predict a shift in trend if Bitcoin encounters resistance around the 64% to 65.81% market share. In this case, Bitcoin could reach another record high or maintain a stable position. On the other hand, if Bitcoin’s market share drops below 50%, we might see an upward trend for alternative cryptocurrencies.

Read More

2024-11-05 19:16