Today, Wednesday at dawn, Bitcoin surged rapidly, nearing $36,000. Simultaneously, the altcoin market showed strong upward momentum. Tokens like Solana (SOL), Toncoin (TON), and Crypto.com’s ecosystem token (CRO) rose by 5%–10%. This rebound pushed the total crypto market cap to $1.3 trillion, marking the highest level since May 2022.
Per TradingView data, Bitcoin’s market dominance dipped from 54.3% in late October to 52.5%, signaling growing interest in altcoins and sparking debates about a potential "altcoin season."
Strong Performance Among Major Altcoins
Leading altcoins showcased remarkable gains. For instance, Ripple’s XRP jumped nearly 10% in a day, becoming the fourth-largest crypto by market cap, surpassing Binance Coin (BNB). This followed Ripple’s announcement of securing key operational licenses in Georgia and Dubai.
Other notable altcoins—Cardano’s ADA, Avalanche’s AVAX, Dogecoin (DOGE), Chainlink’s LINK, and UniSwap’s UNI—also saw positive trends, with daily surges of 5%–6%.
Additionally, Blur’s BLUR token spiked 32% in 24 hours and doubled over the past month. The platform plans a 300M token airdrop on November 20.
Blockchaincenter data reveals that 57% of the top 50 cryptos outperformed Bitcoin over 30 days, while 33% did so over 90 days. Though below the "altcoin season" threshold, this often precedes its onset.
Investment firm ByteTree anticipates an upcoming altcoin season, adjusting portfolios to reduce Bitcoin exposure while adding NEAR, Stacks (STX), LINK, and XRP.
Global asset manager VanEck predicts high-quality altcoins will shine by 2024. Their bullish Solana (SOL) projection suggests an 80x surge to $3,211 by 2030 under sustained bullish conditions.
Macroeconomic Tailwinds
Favorable macro trends boosted risk assets. The Fed paused rate hikes, gold hit a 3-week low, and WTI crude plummeted 4% to July lows. Safe-haven demand drove the 10-year Treasury yield down to 4.55%, a 6-week low, while the S&P 500 hit 4,383—a 7-week high—defying global slowdown fears.
"Mini Altcoin Season"?
K33 Research noted that as Bitcoin fluctuates between $34K–$36K, capital is flowing into altcoins, creating a "mini altcoin season." This pattern often follows Bitcoin rallies, with investors reallocating profits to smaller, riskier altcoins. K33 added that Bitcoin-linked funds are also fueling altcoin markets, supporting BTC’s price.
However, one analyst warns of a potential 30%–60% altcoin correction soon, citing Bitcoin’s oversold dominance as a typical altcoin market peak indicator.
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FAQ: Altcoin Market Dynamics
Q: What triggers an altcoin season?
A: When altcoins collectively outperform Bitcoin over sustained periods, often driven by Bitcoin’s stability and investor appetite for higher-risk assets.
Q: How can investors identify promising altcoins?
A: Look for projects with strong fundamentals, active development, and real-world utility—metrics like partnerships, transaction volume, and community growth are key.
Q: Is now a good time to invest in altcoins?
A: While trends favor altcoins, market volatility remains high. Diversify and consider dollar-cost averaging to mitigate risks.