Markets
Altcoin Season in August? Here’s What JPMorgan Has to Say
Altcoin season is one of the most anticipated events of the year, as non-Bitcoin investors have been waiting for profits for a long time.
The odds of an altcoin season had increased before the recent dip, but there is hope for next month.
JPMorgan is optimistic about the recovery
In a recent research report, JPMorgan noted that they expect Bitcoin and the Cryptocurrency market expected to recover in August. The report further noted that the potential for liquidations to taper off before the end of this month is high.
However, bearish market conditions have prompted the bank to lower its estimated net inflows for this year. The updated estimate suggests that the cryptocurrency market could see inflows worth $8 billion, down from previous expectations of $12 billion.
But if Bitcoin’s price rises in August, according to the bank’s estimate, altcoins could also rally. There is a misconception that altcoins are suffering from BTC growthresulting in a Bitcoin season.
Read more: 12 Best Altcoin Exchanges for Cryptocurrency Trading in July 2024
Altcoin Season Index. Source: Blockchain Center
However, that won’t be the case as altcoins are simply following Bitcoin’s lead. In fact, the last time altcoins rallied to see the start of an altcoin season in the second half of 2023, they were taking cues from BTC.
But even after rallying alongside Bitcoin, at least 75% of the top 50 altcoins, excluding stablecoins, need to outperform BTC.
Only then can the Altcoin Season to be confirmed to be initiated.
How are Alts doing currently?
Altcoins are not even close to witness an altcoin season, as at the time of writing, around 70% of alts were performing worse than BTC over the past 90 days.
The only altcoins in the green that are doing better than Bitcoin are Toncoin (TON), PEPE, BONK, Kaspa (KAS), Monero (XMR) and Tron (TRX). All other tokens are recording losses.
Read more: What are the best altcoins to invest in July 2024?
So if there is any solid chance of an altcoin season, it will likely be in August.
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