Altcoin market awaits Bitcoin rally to $100K for stability

Altcoins are expected to remain volatile until Bitcoin (CRYPTO:BTC) surpasses the $100,000 milestone, according to Swyftx lead analyst Pav Hundal.

Speaking at Aus Crypto Con 2024, Hundal emphasised that an “exuberant move” from Bitcoin is needed to trigger a sustained altcoin season.

Bitcoin came close to reaching six figures on November 23, hitting $99,605 before pulling back to $96,476 at the time of reporting.

Hundal noted that until Bitcoin confirms a breakout, altcoins will continue experiencing fluctuations.

“I mean, they might see a 20%, 30%, 40% gain, but then it’ll retrace most of that move the next day,” he explained.

This pattern was observed with Solana (CRYPTO:SOL), which gained 13% within 24 hours on November 21 but gave back nearly the same percentage over the following days.

Memecoins like PEPE (CRYPTO:PEPE) also followed this trend, with a 93% surge on November 15 after listing announcements, only to retrace 22% the next day.

Bitcoin dominance, currently at 58.3%, is seen as a critical factor in determining altcoin performance.

Hundal believes it may rise to 65%-70% before declining, potentially opening the door for an altcoin rally.

However, CryptoQuant CEO Ki Young Ju expressed skepticism about a similar altcoin season as seen in past cycles, citing institutional investors’ limited interest in speculative tokens.

“For altcoins to reach a new all-time high market capitalisation, they will require a significant influx of fresh capital to crypto exchanges,” Ju remarked.

He added that the lack of fresh liquidity highlights the challenge altcoins face in the current market.

At the time of reporting, the Bitcoin price was $96,215.94.