Can altcoins profit from a next Bitcoin bull run?

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Last Updated on 13 June 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Although the talk of the town in investment circles is still of the magnificent run and subsequent fall of Bitcoin this year, many in the cryptosphere know that it was mostly marked by a fabulous rise of altcoins as well. Main street investors know of Bitcoin, crypto investors know many more cryptocurrencies.

From January until May, we’ve seen the value of Ether skyrocket, Dogecoin become a worldwide phenomenon and many other smaller coins, like VeChain and Ethereum Classic for example, also made headlines.

If Bitcoin breaks out of the $40k range and starts another upward trend, what could we expect altcoin season 3 of 2021 to look like?

Advertentie.

VeChain, Dogecoin and Ethereum Classic

Back in January, when the bull run of Bitcoin started to be confirmed and the $30k price point was overcome for a first time, the first altseason of the year was in full swing.

February and March brought somewhat of a breather  and a slowdown of rising prices, but in April Bitcoin reached an all-time high of $64k and altcoins rose to heights unseen once more.

Coins like VeChain, Dogecoin and Ethereum Classic were in the news constantly.

New altseason?

As Bitcoin sold off in May and has steadied in the past few weeks, altcoins saw even bigger drops. Now that sideways trading is back upon us for Bitcoin, some fear it might tumble below $30k and go into the red for 2021, if more investors lose faith.

However, the opposite is also true, namely that if Bitcoin manages to break above $40k again, we could see a repeat of the altseason.

For this, history does not give a clear indication as to what will happen. Crypto analysts who proclaim altseason as soon as Bitcoin would break above $40k a few days in a row, would normally be doing that too soon. For a new altseason to arrive and the current correction to be definitely over, we would probably need to see several days of cumulative high gains of Bitcoin. When Bitcoin stabilizes and loses dominance, the profits from Bitcoin will slowly flow to altcoin projects.

If that doesn’t happen in June, we could be on the lookout for a sideways trading summer. Therefore, if your crypto portfolio is spread over several coins, be prepared to wait it out and HODL if you can.

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