Crypto exchange Bybit and research firm Block Scholes have released a new report analyzing why the anticipated altcoin season hasn't occurred in the current market cycle.
Market Situation: Analyzing the Current State
The current cryptocurrency market is characterized by uncertainty. In previous cycles, altcoins showed significant price gains amid capital rotation from Bitcoin, but this cycle has not seen such movement.
Factors Affecting the Market
According to the report, several factors have influenced the current crypto market outlook. A key factor is the lack of expected dip in BTC dominance post the April 2024 halving. Moreover, Ethereum has shown relative underperformance against Bitcoin and rivals like Solana and Sui.
Possible Scenarios
Despite the current situation, the report suggests that the potential for a late surge in altcoins remains. Stablecoin growth and trading volume for centralized exchanges in Q4 2024 support this outlook. BTC's rise to new highs in 2025 could accelerate the search for altcoin opportunities and intensify capital rotation, especially if ETH skyrockets.
Bybit and Block Scholes' report provides an in-depth understanding of the complex cryptocurrency ecosystem and indicates that despite the current situation, opportunities for altcoin growth remain.
