Altcoin Market Surge Predicted as New Altseason Begins, Analysts Say

• Analysts signal a new altseason with potential for major gains in low-cap altcoins.
• Bitcoin trends indicate a potential price surge to $350,000, according to market projections.
• Historical trends and liquidity inflows suggest a strong Q4 for Bitcoin and altcoin markets.

The crypto market is seeing signs of an impending altseason, with analysts pointing to a shift in market dynamics. Recent data from the Altcoin Indicator, which tracks trends in altcoin performance, shows a parabolic movement for the first time in three years. 

This development is prompting expectations of significant gains in low-cap altcoins, similar to those seen during previous altseasons. The chart analysis indicates that Bitcoin’s performance often drives liquidity into altcoins, with large-cap tokens already showing movement. 

Experts anticipate major liquidity inflows in the 2024-2025 cycle, driven by several catalysts. Among these are the upcoming U.S. election, where both leading candidates support Bitcoin, and the Federal Reserve’s expected rate cuts. 

Additionally, the reversal of China’s crypto ban and the $16 billion FTX payout slated for Q4 2024 to Q1 2025 are expected to boost market liquidity further.

According to the chart, the market is currently in a buying phase, with Bitcoin projected to reach a price target of $350,000.

This projection is based on historical patterns of Bitcoin’s all-time high prices coinciding with altseason cycles. In previous cycles, sharp increases in Bitcoin’s price were followed by rallies in altcoins, leading to substantial gains. 

A heatmap of Bitcoin’s monthly returns from 2013 to 2024 highlights a trend of strong performance in the fourth quarter. 

Historical data shows that October and November are typically strong months for Bitcoin, with significant returns in previous years. Based on this trend, the coming months could see another price surge, potentially leading to a new all-time high and triggering an altseason.

Comparisons to past altseasons show similar breakout patterns in the market. In the 2016-2017 cycle, altcoins rose from a $585 million market cap to $500 billion. During the 2020-2021 altseason, the market surged from $163 billion to $1.5 trillion.

Analysts now predict a similar pattern for the 2024-2025 cycle, with the current market positioned just past a breakout point. The market is expected to reach a much higher cap, possibly beyond $3.7 trillion.