Crypto analysts thought the long-awaited Altcoin era might not be far off now, but the indicators of the altcoin era paint a different picture so far.
A “massive liquidity shift” later this year will lead to a “parabolic pump” for altcoins, predicts crypto analyst ‘ash crypto.’
The majority of altcoins are worthless this year, despite Bitcoin (BTC) surging 680% from November 2022 bear market lows and other major assets, such as stock stocks and goldwhipping all the time.
Investors are currently focusing only on safe-haven assets this year due to trade tariff concerns and geopolitical tensions, he said.
“So currently, the liquidity is only in low-risk assets, and if you look at 2017 and 2021, this is how a bull market always plays out.”
However, with some Federal Reserve Rate cuts are expected And a monetary policy exercise, “we will see liquidity flowing back to risk assets,” which will send BTC and ether (Eth) At new peaks, and altcoins will follow, the analyst predicted.
Another analyst, Digital Asset Investor ‘Crypto Gems’ shared a chart highlighting the last time the US central bank injected liquidity, kicking off the altseason.
There are also more than 150 altcoin exchange-traded funds awaiting SEC approval, which could be another catalyst.
Related: Altcoins usually throw hard before the altseason: will history repeat itself?
Altseason Index at Bear Market lows
However, index of altcoin season indicators tells a completely different story, with most of them at Bear Market lows.
The blockchain center’s altseason index is Current At 35 out of 100, it’s the lowest it’s been since July.
CoinmarketCap’s altseason gauge is below 24, Reporting That it is still “Bitcoin time”, while Cryptorank also shows a low of 24, and Bitget’s altcoin index is at 30.
Top performing altcoins are few and far between
Apart from some outliers like Binance Coin (BNB) and hyperliquid (hype), which produced recent highs, most altcoins are trading at multi-year lows.
Some have started moving now, though, including BNB, Solana (Sol), Hype, zcash (Zec), and World Liberty Finance (WLFI), are all expanding the broader market, according to Coingecko.
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