Optimism has been very high in the cryptocurrency market ever since Bitcoin and other cryptos rallied and made significant gains in early April. While some have declared this rally to indicate the end of the crypto-winter, others have claimed that this is in fact, the “Altcoin season.” However, London Block Exchange’s market report may be a dampener on such optimism.
The UK-based cryptocurrency exchange’s weekly market report advises caution in the face of the market’s bullishness this month. Not only does the report warn against any proclamation of an “Altcoin season,” it also highlights the unpredictability and uncertainty associated with Bitcoin’s price movements in the near future.
LBX’s report suggested that the altcoins’ rally over Easter could have been a false start since the collective market cap pumped by only 3.4%, when compared to the 18th. While a significant pump in itself, the market cap was still 0.5% shy of the year’s all-time high that was achieved on April 10. Such pumps are a zero-sum game for altcoins, LBX stated.
LBX concurred with @Cryptorangutan’s analysis of altcoin movements over the past few months, stating that almost all altcoins (Litecoin, for instance), have retraced since surging significantly for a brief period. Additionally, some of these altcoins have bled and lost out on their gains as well. This, LBX claims, is proof that the altcoin season hadn’t dawned yet. @Cryptorangutan had this to say about the many pre-preemptively declaring the same,
“…It’s funny to see the same people who misscalled the alt season for the 10th time in the last year NOW deciding it’s not happening and reducing alt exposure”
The market report also had some interesting insights into Bitcoin’s performance. Citing Bitcoin’s recent 2019 high, LBX stated that all, except two altcoins, lost their value against BTC over the corresponding 24-hour period, with the average loss at 3.2%. This may be evidence of the crypto market not always following the lead of the world’s largest cryptocurrency.
Further, the report said, Bitcoin is unlikely to break forward and breach the $6,000 mark as the top cryptocurrency is yet to “prove itself” at the current level, which was the same level BTC hit last November before it fell down again.