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Permit me to begin this discourse by first describing what an altseason have come to mean in the crypto parlance.
An altseason is a period in the crypto market whereby altcoins generally experience explosive gains, having outrightly outperformed Bitcoin. A typical altseason may last for just a few weeks, leaving impacts that could last for years in the lips of the gainers.
For instance, the last altseason witnessed in the crypto space occurred between December 2017 and January 2018. Although Bitcoin reached an all-time high during this period, altcoins generally exploded in prices - some even going as much as 20 times their original price.
However, the story took a twist when the bear market set in beginning from the end of January 2018. Although nearly all the gains of the last altseason had been eroded in the past months, the memories remain intact and fresh.
While we can confidently say that the year 2019 has not been fair to altcoins so far, the story is different for Bitcoin. From a low of about $3k at the start of the year, Bitcoin reached a high of $13k before slipping to the current price levels. Unfortunately, while Bitcoin was mooning, altcoins were in the dust. This raises the important question, what will fuel the next altseason?
The answer to the question above is not an easy one. Candidly, nobody really knows when. We can, at best, speculate and make intelligent guesses. Before I give my answers regarding what will fuel the next altseason, however, it is important that we examine what fuelled the last altseason.
Remember that in the opening paragraphs, I stated that the last altseason started when Bitcoin reached a new all time high. That was not a coincidence. There was massive inflow of money into altcoins for only two reasons. First, Bitcoin whales were taking profits and trying their last round of luck on altcoins. Second, FOMO had come on board.
So, the next altseason, if history repeats itself, will occur when Bitcoin sets a new all-time high decisively above $20k. When Bitcoin whales start to take profits again, as a way of maximizing their profits, I foresee a massive inflow of money into altcoins. They know that that will at least quadruple their profits before making the final exit. When this happen, the Bitcoin dominance will naturally drop and altcoins will explode in prices - perhaps more than what was seen a few years ago.
Not only that, with Bitcoin becoming too risky to buy due to its soaring prices, those who do not want to miss out completely are likely to invest in altcoins, thereby contributing to the formation of an altseason.
Nevertheless, I believe that before Bitcoin reaches a new all-time high, we might witness pockets of rallies in the prices of altcoins. This will be nothing but a flash in the pan. The real, earthquaking altseason is not likely to occur until the king coin, Bitcoin, smashes its own record and the whales begin to take profits.
I am @gandhibaba, the young man who goes about carrying his magical pen, not his gun, in his pockets.
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Gif courtesy of @artzanolino
I hope alt season is around the corner. Either way, now is the best time to keep our heads down and accumulate/build, so I just focus on that and whenever alt season decides to come about, I'll be waiting with bags in hand ;)
Thanks for making your first post from https://steemleo.com! 🦁
Exactly the point. Now is the right time to accumulate ahead of the beautiful days ahead. It's my pleasure to be here on Steemleo and thanks for the hefty upvote. Cheers!
Bags in hand, like a kid with an empty bag before the pinata gets smashed.
That's a good point re the "soaring price" of Bitcoin. It's certain that cryptos will do well in the future (short-term as well as long-term), but that could result in bitcoin becoming too expensive for many to buy.
So, instead of buying a fraction of a bitcoin, they'll buy a few hundred BCC, or a few thousand Steem.
If and when that happens, we'll see another alt-boom.
Very good additional analysis here. Hopefully, these predictions will come true and another altseason will emerge. Cheers! And thanks for stopping by.
Alts always have a higher risk.. I personally think during the next Alt season only few Alts will give the 20X returns and a majority will fizzle and die out. The key will be to research and select quality alts.
Regards appreciated friend @gandhibaba.
Maybe it has to do with the next halving?
If altseason occurs, I think that ETH will dominate the contest.
Great post!
Your friend, Juan.
I share your opinions here. ETH will dominate alongside other solid projects like STEEM. Cheers!
Dear @gandhibaba
I wish to believe that there will be another seasons for alts coming. However all I can think is that most of those alts offer no value and their price went up simply because of ONE-TIME-HYPE.
Somehow it seem to be very unlikely that 2007 would be repeated. ever. I don't know many people who are willing to invest their $$ into any ICO out there. Risk versus reward is simply not worth it.
In 2007 investors didn't have to worry about laws and regulations. ICOs were something new, something building excitement. Those days are probably forever gone. I would assume that security token offerings could bring more interests in the future, but STOs won't be traded on current exchanges (like binance, bittrex etc).
I think that 2018 and 2019 should be considered "judgement day", which exposed weakness of majority of altcoins. Plus people became smarter and more educated.
Upvote on the way.
Yous, Piotr
Some people were saying it was STOs. I can see every stock being a token, but I'm with the people that say dApps will be the next big dChain advancement.