Altcoin Market Can See Final Flush Out before Altseason Begins

The crypto market is bracing for heightened volatility ahead of the Us election results, with Bitcoin dominance reaching its highest level since March 2021, while altcoins face a stronger correction.

Bhushan Akolkar By Bhushan Akolkar Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Altcoin Market Can See Final Flush Out before Altseason Begins
Photo: Depositphotos

Key Notes

  • Analyst Benjamin Cowen predicts an “altcoin reckoning” by December 2024, mirroring the final "flush-out" of the 2019 bear market.
  • A potential altcoin recovery cycle similar to the 2020-2021 rally is expected to begin in early 2025.
  • Altcoin market declines accelerated over the weekend, pushing total crypto market cap to $2.4 trillion.

Along with the Bitcoin BTC $96 199 24h volatility: 2.3% Market cap: $1.90 T Vol. 24h: $128.60 B price retracement under $70,000, the altcoin market is facing an even stronger correction. The crypto market is bracing for volatility ahead of the US election results and the Fed rate cut announcement this week.

ITC Crypto founder Benjamin Cowen stated that there could be more pain for the altcoin market before the altseason resumes. He also predicted the final ‘altcoin reckoning’ by December 2024. “It looks like the grand finale of the altcoin reckoning has finally arrived,” said Cowen, in a post on the X platform.

Besides, Cowen also predicts the altcoin reckoning to be over by the second week of January 2025, at the latest. “It has been a long journey, and many gave up along the way, but this process was always going to play out,” he said.

The forecast draws from a similar final “flush-out” event that hit altcoin markets during the 2019 bear market. Cowen showed that the current altcoin market capitalization charts reflect a comparable pattern. Altcoins gradually recovered in 2020 before reaching new highs in 2021, and the analyst suggests this scenario could unfold again in 2025.

Altcoins Face Major Correction against Bitcoin

In another post on the X platform, Cowen said that the ALT/BTC pairs have continued to bleed for nearly three straight years while adding that the last two altseasons occurred in the post-halving years of 2017 and 2021.

In a post earlier today, November 4, another trader “ardizor” predicted something similar adding that the altseason patterns similar to 2017 and 2021 are “happening again after three years”. Crypto investor “Sensei” shared with his 60,000 followers on X that “the biggest altseason ever will start in less than 10 days.”

As of now, the Bitcoin dominance in the broader crypto market has surged to 60.5%, the highest level since March 2021.  Any significant movement for altcoins is unlikely until BTC’s market share drops below 50% again.

Crypto markets retreated over the weekend, bringing total capitalization down to $2.4 trillion by Monday, November 4. Altcoins bore the brunt of the losses: Ether ETH $3 795 24h volatility: 1.7% Market cap: $455.26 B Vol. 24h: $62.41 B and Solana SOL $230.5 24h volatility: 0.4% Market cap: $109.25 B Vol. 24h: $12.03 B dropped 11% from their October 30 highs, while BNB BNB $710.1 24h volatility: 3.9% Market cap: $103.14 B Vol. 24h: $3.77 B lost 8%. Meanwhile, Bitcoin has only dipped 5.8% since reaching $73,000 late last month, continuing to dominate the crypto market.

According to Santiment, crypto traders are bracing for volatility this week as the US approaches results for a highly polarized election. Traders, particularly Bitcoin whales, appear to be on alert, “expecting the unexpected”. Whale activity has notably declined since last week’s spike in transfers, which occurred near Bitcoin’s recent peak, signaling caution among major holders.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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