Last week, interest in altcoins and the phenomenon of 'alt season' significantly decreased in response to falling prices for major cryptocurrencies.
Decline in Interest for Altcoins
According to Google Trends, global searches for the term 'alt season' dropped to a score of 45 on Tuesday, down from a peak of 100 just a week earlier. This decline coincided with Bitcoin's price correction after reaching a record high of $124,128.
Price Dynamics of Bitcoin and Altcoins
Bitcoin has retreated over $10,000 in profits in the past six days, now stabilizing around $113,800. This price drop has also impacted altcoins, with Bitcoin dominance sitting at 58.98%. For instance, Ethereum fell by 8.43%, while Dogecoin and Shiba Inu experienced declines of 13.91% and 11.53%, respectively.
Market Analysis and Alt Season Prospects
Despite the current market downturn, some analysts are observing potential signs of an upcoming altcoin rally in the next few months, drawing parallels to market cycles seen in 2020 and 2021 when altcoins experienced a correction followed by significant growth.
The decline in interest in alt season and the drop in cryptocurrency prices may indicate market correction. However, analysts still highlight the likelihood of an alt season emerging in the future.
