At the end of what was an amazing year for the world’s favorite crypto, Bitcoin appreciated 150%. With the recent failure to breach the psychological level at $100k, a short-term top has likely been made there, and a correction before breaching that level is likely, in my opinion. However, there is still reason to be joyful and cheer, for altcoin season is here.
Market Cap Spells the Story
While writing this merry tale, the total market capitalization of BTC stands at $1.9 trillion after its adamant attempt at cracking the $2 trillion level earlier this month. Below this sleeping giant, a thunder is brewing in the total market cap minus the top ten coins, rising before my eyes at $389 billion. The juxtaposition of the two markets on a chart reveals that while Bitcoin’s total cap has clearly made a high and come down, the cap of all the coins not in the top ten has just begun to make its ascent for this bull cycle.
With every crypto bull run, Bitcoin front runs the competitors who do not see gains until BTC has exhausted itself. Every cycle, Bitcoin has exhibited diminishing returns, while altcoins outperform consistently in the later part of the cycle.
Huge Weekly Gains Support a Shift in the Cycle
Of the top 100 coins by market cap, 42 coins experienced massive weekly gains of 20% or more; only 2 (XRP and Cardano) are in the top 10 by market cap.
If we look at real small-cap coins, the top 40 earners this past week grew by 20,000x or greater. These meme coins also have 42 coins (that are on Coinmarketcap.com, many are not) that lost more than 90% this week, so do your own research and do not skimp on it.
Some coins have blown up and have a shot at continuing to prices not reached for 6 years. In the case of Ripple (XRP), currently at $2.72, this represents an 88% appreciation in price over the last 7 days. It still sits 29% below its all-time high. Ripple’s previous record high was reached in what may have been the very first altcoin season back in 2018. Be wary of buying now for the simple fact that Ripple’s long-term chart shows us.
The previous ATH was made in a completely parabolic fashion with an extremely sharp correction following it; this recent ascent has an almost identical pitch or rate of ascension to the one that occurred 6 years ago.
Another older coin, Cardano (ADA), has grown by 245% during the last three months and is still 58% beneath its own all-time high reached in the last cycle in September 2021.
There is still money to be made in this current season. ’Tis the time to get together and gather around a roaring cryptocurrency market displayed on a small screen. Alt Season Santa will bring gains to all the good boys and girls and leave the greedy ones rekt and broke. So, you better watch out, you better not scream, you better not ape in on any dumb memes-Alt coin season is coming to town.
