The Start of Altseason 2021?

The absolute most coveted time in the cryptosphere is called Altseason and speculation is constant of when its arrival will change the lives of many much as it did in 2017–2018. Some would argue that we have already experienced it this cycle and to some degree, it is subjective. With most legacy cryptos like ETH, LTC, NEO, BCH, ETC and others just breaking their 2018 all time highs, we think the fun is just getting started.

Is there any evidence that Altseason has started?

We do believe that Crypto markets are starting the first major leg of an Altseason. We have seen chart after chart reflect the breakout to all time highs, then retrace back to the previous all time high, and then pump further into price discovery which is a classic sign of the start of Altseason.

Another major sign is large cap alts pumping 30 or more percent daily like we have seen in BCH, DOGE, and ETC (all of which are not leaders of crypto innovation). This signifies capital being moved out of Bitcoin and being reallocated to plays with stronger risk/return ratios.

Bitcoin dominance is currently at 46% as of May 5th which is the lowest it has been since everyone’s fabled 2018 Altseason and we anticipate it to continue to decrease lower than the 37% low from that cycle.

Will Ethereum surpass Bitcoin in market cap this cycle?

It is our belief that Ethereum absolutely has the potential to flip Bitcoin’s market cap this cycle. It almost happened in 2017 and ETH was nowhere as powerful as it is today with essentially the entire DeFi ecosystem being built on it.

Bitcoin has remained stagnant in innovating the crypto world and has resigned itself to being the Gold of this sector (an $11T market). Ethereum is taking on the banks, international business, and derivatives markets (>$1Q markets) giving it the potential to surpass the value and use of Bitcoin many times over.

This week we have seen a resurgence of DeFi assets.

What is driving the prices further?

With LINK up 34%, MKR up 21%, and RUNE up 28% as of May 5th, we are seeing assets that are capturing value through providing the plumbing and governance of decentralized ecosystems really showing their strength to rise alongside the legacy large caps that have been recovering as well. With DeFi being the buzzword of this cycle, it is not surprising to see these assets continuing their dominance.

Why is the price of BTC cooling down?

Bitcoin is cooling down from a technical and cyclical perspective. On the technical side, it has been overbought on the Daily and Weekly timeframes. It is having a healthy correction and consolidation that will allow this run to continue and not go parabolic too soon.

On the cyclical side, BTC usually consolidates and loses dominance over alt coins during and altseason which is exactly what we are seeing here. Profits cycle out of bitcoin into lower cap projects which then cycle back to BTC for a final push upwards.

What about the almighty DOGE?

We have seen so much coverage of DOGE lately and I personally know tons of people getting involved in it which is great to see but at the same time it can be a bit dangerous for new investors. Very few wallets hold the majority of the DOGE in circulation and have the power to drain the price at any time if they feel ready to take profits.

Typically, DOGE also tops out before even Bitcoin in a bull cycle so just be weary if you have made some money in it and have not taken profits at all. Now is the time to get your strategy in order if you have not done so already.

The Bottom Line:

It does in fact appear that the time has arrived for our beloved Altseason to return in full form. For those in the know, there is and has been opportunity everywhere you look. Even for those that are not as knowledgeable in the space, excellent returns have been made and there is still quite a bit more potential ahead.

This is the time in the cycle where shady projects will come out of the woodworks to promise 100x returns and take advantage of the greed that comes with the network effect generated from the gains already had. As you are making money, take profits and don’t get stuck holding the bag that somebody sold you.

Whether you are here for the technology, innovation, or because somebody pointed you in our direction, let’s make some money.