As 2024 draws to a close, Bitcoin remains the number one cryptocurrency. After April’s halving event tightened Bitcoin’s supply, its price showed certain instability but then broke again above $65,000. Historically, the last quarter of Bitcoin’s halving years usually sees prices go up, with investors now closely watching to see how altcoins will follow.
Bitcoin’s Dominance in the Market
Currently, Bitcoin is leading the market with over 57% of dominance in the industry. Michael Graw states that Bitcoin remains one of the best crypto to purchase now, nad is dominant due to its long-term value and the fact it’s recognized by several major governments.
BTC dominance tends to peak after a halving event, but history shows that once it declines, it opens the door for altcoins to get in the spotlight. This change, better known as “altcoin season,” usually describes a movement of capital from Bitcoin into some other, smaller assets.
Institutional interest, especially in spot Bitcoin ETFs (Exchange-Traded Funds), has been the biggest trigger for Bitcoin’s continued growth. Big financial institutions offering these ETFs have attracted large investors who choose to own Bitcoin without directly holding the asset. This institutional momentum is most likely to influence the market well into 2024, keeping Bitcoin dominant but also setting the stage for the next altcoin surges.
Indicators of the Altcoin Season
While Bitcoin remains strong, many speculate that altcoins could soon experience a breakout. Investors should pay close attention to the Bitcoin dominance index, which, when it starts to fall, often signals the start of a new altcoin season.
Ethereum and Solana are on a good way to bring some great profits, with BNB, Dogecoin, and Cardano following the lead. The altcoin market is a bit more unstable than Bitcoin – their way smaller market caps and liquidity make them experience some huge price swings, which can lead to much bigger gains.
Institutional Support Pushes Bitcoin
Bitcoin’s 2024 surge didn’t happen just like that – major financial institutions have recently announced support for the crypto type. For example, the CEO of BlackRock Larry Fink expressed in July that he is now a strong believer in crypto. BlackRock is a global investment management company that currently manages the largest Bitcoin ETF.
Fink, who is worth somewhere in the region of $324 million, is a highly influential figure. His statement and his company’s work on Bitcoin ETFs would have likely influenced many to start investing in Bitcoin.
Market Signals for the Upcoming Bull Run
If you want to keep up with the whole situation, take a look at Bitcoin’s dominance index. Whenever this metric begins to drop, it’s usually a clear sign that money is beginning to move to altcoins. The crypto market is now entering a bullish phase, which is a strong indicator that retail investors may soon come back to the market.
Sometimes, the number of active wallet addresses, transaction volume, and developer activity can signal increased usage of particular networks, leading to price increases. In some previous bull runs, Ethereum saw massive growth in activity as DeFi projects and NFTs gained solid popularity.
Predictions for the Big October Rally
Some crypto analysts have speculated that Bitcoin could soon break its latest ATH of $73,000 as early as this October. They claim that the rally could be led by the reduced supply from Bitcoin’s halving and increased demand from spot Bitcoin ETFs. Bitcoin tends to perform extremely well in the last quarter of halving years.
However, traders have also been warned of volatility, with “liquidity sweeps” that could trigger some short-term corrections before Bitcoin makes its next big move. These corrections can be unattractive for short-term traders but are often seen as big opportunities by long-term investors.
