Santiment's analytics showed that traders claim the altcoin season is around the corner due to Bitcoin's recent bounce. The company's analyst noted that BTC's rise to the $94K-$96K range over the last five days suggests that a significant profit redistribution towards altcoins may occur later.
The analytics company emphasized that there was a 10.2% increase across the entire cryptocurrency sector, while Bitcoin's share was only 7.6%. The analyst also believes this means that some money collectively shifted into smaller market capitalizations like altcoins.
The Santiment analyst also added that as the cycle continues, retail traders will incur enough losses during the bear cycle (which lasted from mid-January to early April) to exchange their altcoins for Bitcoin on stablecoins. He also claimed that 'traders can't stop returning to gambling thinking' during the revival of market capitalization, as seen in the second half of April.
Santiment noted that few traders get into the meme game early enough to enjoy a decent share of the upward momentum of the temporary trend, but others will join in as soon as prices begin to rise.
The company reported that among the trends traders are discussing, there is a surge in meme discussions. The company stated that it has seen a spike in interest in keywords such as 'altcoin', 'altcoins', or 'altseason' on social media platforms.
The analytics company emphasized that history has shown that the most opportune entries into any altcoin cycle occur when the crowd demonstrates complete disinterest in altcoins. An analyst from the firm added that markets often move consistently in the opposite direction of retail expectations.
The company's analyst noted that traders constantly have their own interpretations of what a 'bull market' and 'bear market' actually mean and how long a 'cycle' or 'season' should last in cryptocurrency. He highlighted prominent social media figures like Ted Pillows, who take a rational approach by looking at things from the conventional perspective of a 4-year cycle.
Santiment acknowledged the significant growth in the total market capitalization of cryptocurrencies in mid-2017 and 2021, which corresponds with the current cycle. The firm also stated that the combination of declining rates, Trump’s presidency, and ETF approvals led many optimistic traders to believe in this line of thinking.
The Santiment analyst argues that some attribution for the current renewed interest in speculative assets may be related to Trump's official TRUMP coin campaign. He also reported that the digital asset, which began publicly trading shortly before Trump's inauguration in January, experienced some resurgence in interest after being labeled as a pump and dump.
The analyst reported that Trump has made efforts to energize both his political base and the value of his associated crypto token by announcing that the 200 largest holders of TRUMP will be invited to an exclusive event at the White House on May 22. He also acknowledged that the president said the 25 largest holders will receive an exclusive VIP reception and a special tour.
Santiment noted that Trump's antics have attracted huge attention in both political and trading circles. The firm claims that a key takeaway for the markets is that the U.S. president is actively trying to link his campaign to crypto culture, particularly the meme coin culture.
The company's analyst believes that the bright rise of the TRUMP coin and the media hype likely played a role in traders becoming interested again in smaller, fast-growing altcoins around the world.
Santiment showed how social volume and the price of TRUMP relative to BTC surged immediately after its announcement. The analytics firm stated that the digital asset rose by 54% in the first hour after the announcement, while social volume confirmed how strongly the president's promotion is constantly on traders' radars.
#Market Rebound
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