- According to a new JPMorgan analysis, the cryptocurrency market and Bitcoin should rebound in August.
- When an altcoin season was last seen, it started with a spike in the price of Bitcoin, which other altcoins then followed.
- Although there are indications of recovery throughout the market, bullishness is being hampered by the increase in volatility.
- Due to the long wait for returns by non-Bitcoin investors, the altcoin season is one of the most anticipated events of this year.
Before the latest crash, there was hope for an altcoin season, and this month presents more opportunities.
JPMorgan Has Hope for a Recoveries
JPMorgan stated in a recent research study that they anticipate a recovery in August for Bitcoin and the cryptocurrency sector. The research also stated that there is a good chance that liquidations may decrease before the end of this month.
However, the bank reduced its projected net inflows for this year due to the negative market conditions. The revised estimate, which was based on earlier estimates of $12 billion, indicates that the cryptocurrency market may see inflows of $8 billion.
However, the bank estimates that if the price of Bitcoin increases in August, the altcoins may also see a recovery. There is a false belief that altcoins are negatively impacted by the rise of BTC, creating a Bitcoin season.
This won’t be the case, though, as altcoins are only adopting Bitcoin’s strategy. Actually, in the later part of 2023, when altcoins last rose to mark the start of an altcoin season, they were taking their cues from Bitcoin.
However, even after increasing in value alongside Bitcoin, at least 75% of the top 50 altcoins—aside from stablecoins—must surpass BTC.
It will only be confirmed that the Altcoin Season has begun at that point.
How Are Things Going Now for Alts?
Since over 70% of altcoins are now performing worse than BTC over the previous 90 days, altcoins are not even close to experiencing an altcoin season.
Only Toncoin (TON), PEPE, BONK, Kaspa (KAS), Monero (XMR), and Tron (TRX) are among the cryptocurrencies performing better than Bitcoin that are in the green. Every other token is reporting a loss.
Consequently, August will probably be the month when an altcoin season is most likely to be observed.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
