The altcoin season trend is delayed due to macroeconomic factors and the cryptocurrency market
Market sentiment and the possibility of the altcoin season being delayed
The current situation is witnessing a significant decline in predictions for the altcoin season. The cryptocurrency market is clearly retreating under increasing geopolitical pressure. Negative headlines are causing disruptions, especially in the altcoin sector, making investors more anxious than ever. In the context of Bitcoin and Ethereum facing short-term selling pressure, capital flows are seeking safer havens. This uncertainty raises questions about whether investors will soon see a recovery of the altcoin season.
Analysis of the reasons for the delay in the altcoin season
The impact of Bitcoin on market conditions
Top cryptocurrencies like Bitcoin are leading the downward trend as capital flows concentrate on safe assets. The market is witnessing an increase in institutional investors and listed companies holding Bitcoin on their balance sheets, increasing 2.3 times since 2024. According to the M2 charts of independent research organizations, the number of businesses owning Bitcoin has increased over 150 times, clearly reflecting Bitcoin's appeal as a long-term asset. This content creates a prolonged 'Bitcoin season', where capital flow focuses on Bitcoin instead of flowing into altcoins.
The impact of monetary policy and macroeconomic conditions
The Federal Open Market Committee's (FOMC) policy of maintaining interest rates, along with the increase in M2 supply, further restricts capital flowing into riskier altcoins. Analysts predict that if geopolitical conditions improve, Bitcoin's price could reach $150,000, further solidifying its position in the market. Additionally, the GENIUS Stablecoin bill in the Senate also positively contributes to the entire market, especially Bitcoin, by boosting institutional investors' confidence in mainstream stablecoins.
The impact of policies and legal actions on the cryptocurrency market
The role of Stablecoin legislation and institutional integration
The passage of new stablecoin legislation helps enhance trust and encourages institutional investors to participate in the market, especially in Bitcoin, due to its transparency and high liquidity. Investing in Bitcoin becomes the top priority for new capital flows, leading to an increasing capital concentration in this asset while delaying the shift of capital into other altcoins.
The future and predictions for the cryptocurrency market
Factors driving the recovery of the altcoin season
Although currently, capital flow and market sentiment favor Bitcoin, positive macroeconomic factors such as the approval of Stablecoin legislation, the rise of Bitcoin ETFs, and the stability of monetary policy could potentially drive the altcoin season back in the near future. As geopolitical conditions become more favorable, the anticipated surge of altcoins may occur more strongly, serving as stepping stones for a long-term growth cycle of the global cryptocurrency market.
Source: https://tintucbitcoin.com/altcoin-chung-lai-bitcoin-chiem-uu-the/
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