Here’s When Altcoin Season Will Begin as Bitcoin Dominance Peaks, Analyst Says

Key Insights

• Crypto analyst Michael van de Poppe expects an incoming altcoin season after years of stagnation.
• Bitcoin's current dominance shows that capital rotation into altcoins is historically due.
• Altcoins have mostly underperformed since late 2021 and have endured a long consolidation.
• Macroeconomic factors like central bank uncertainty and inflation fears are contributing to investor risk aversion.
• Van de Poppe believes that the current period is an accumulation phase for altcoins.

After years of sluggish movement in the altcoin market, one of crypto’s most recognized analysts believes that a change could be inbound.

Michael van de Poppe, believes a new altcoin season could be on the horizon.

With Bitcoin taking over the headlines and market share after reaching an all-time high of $111,980, investors are starting to wonder whether altcoins will soon follow suit.

Van de Poppe believes that altcoins are due for a breakout, and the current market cycle shows a rare opportunity to accumulate at low prices.

Bitcoin's Dominance and the Wait for Altseason

Currently, Bitcoin holds over 64.6% of the total crypto market share, according to CoinMarketCap.

This level of dominance is often a major problem for the altcoins. Bitcoin holding so much dominance over the market means that capital is flowing mostly into the flagship cryptocurrency before reaching other assets.

This trend has kept altcoins in the shadows for most of the current cycle.

However, according to van de Poppe, this might be the calm before the storm.

In a recent market update, he pointed out that despite Bitcoin’s strong performance, altcoins are historically overdue for a rally.

He believes that altcoin seasons tend to happen in predictable cycles. This means that they typically follow a massive Bitcoin rally.

As investors start to take profits from BTC, they often rotate those gains into altcoins in search of higher returns.

Why Altcoins Have Been Lagging

Van de Poppe pointed out that altcoins have been largely underperforming since late 2021.

While 2021 was a great year for many newer tokens (especially memecoins and Layer-1 competitors), mainstream altcoins like Litecoin, EOS and even Ethereum didn’t perform nearly as well as expected.

He explained that during the previous bull run, Bitcoin reached around $65,000. By that point, nearly 95% of altcoin gains had already been realized.

After that, a brutal correction hit the market in 2022 and investor interest in altcoins went straight down.

What followed was a long phase of consolidation and decline, where many altcoins lost up to 90% of their value. This long cooldown left even seasoned investors wary of entering the altcoin market again.

Macro Factors Are Holding the Market Back

According to van de Poppe, the delay in altcoin season isn’t only due to market cycles alone.

Wider macroeconomic factors are also a major part of this equation, as uncertainty around central bank policy, concerns over inflation and the fears of a worldwide recession are making investors more risk-averse.

“People are still afraid,” van de Poppe noted. “There’s been too much uncertainty in the economy, and that keeps money in safe assets like Bitcoin and gold.”

He also mentioned how gold recently hit a new all-time high, which indicates that most financial investors are still looking for safety rather than chasing high-risk gains in altcoins.

The Market Is Split, But Accumulation Phase May Be Ending Soon

At the moment, there’s a growing divide in the crypto community. Some believe we are still stuck in a bear market, while others think the early stages of a bull run are already here.

Van de Poppe believes the latter to be true, and thinks now is the time to accumulate, especially while altcoins are still heavily discounted.

“Retail investors aren’t paying attention right now,” he explained. “That’s exactly when smart money starts buying. The real altcoin season starts when these assets quietly start climbing, and by the time most people notice, the best gains are already gone.”

While van de Poppe’s outlook was devoid of specific investment advice, his tone indicates that investors who are more interested in the long-term should consider building positions now.

If history is any guide, altcoins may not be far behind Bitcoin.

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