2022 is expected to bring the altcoin season to put these digital tokens at the forefront.
Bitcoin has been the leading cryptocurrency market leader since its inception in 2009. But the first and most important digital tokens are also paving the way for altcoin, which is making remarkable progress today. At some point, altcoins like Ethereum can easily outperform BTC, according to experts. While the crypto sector is eagerly awaiting a shift, 2022 is expected to bring the altcoin season to the forefront of these digital tokens.
Bitcoin and Ethereum recently reached record highs of $ 68,500 and $ 4,800 towards the end of 2021, respectively. After massive bullish friction, crypto enthusiasts believed that BTC would break the long-standing psychological resistance of $ 100,000 before the start of 2022. But things got worse when the Fed announced interest rate revisions to distract people from investing in risky investment models like cryptocurrencies. Bitcoin and Ethereum have hit record lows since the news headlined. BTC prices temporarily fell below the major resistance level of $ 40,000 this Monday, panicking investors approaching the cross of death. It bounced back a bit, but the historical lows of Bitcoin and Ethereum domination could mean that the altcoin season is on the radar.
This is not the first time Bitcoin has lost its value. For almost two years, BTC’s market stance has been threatened by altcoin. Prior to the 2017 price hike, Bitcoin alone accounted for 95% of the total cryptocurrency market. However, in less than a year, Altcoin took over the market, pushing Bitcoin up to 35%. However, there seems to be something even more interesting in 2022. In just a few weeks, BTC and ETH investors have panicked, demonstrating that the altcoin season is approaching.
Bitcoin’s stance today
2022 marked a tug of war between the bulls and the bears of cryptocurrencies. The decline in Bitcoin, the top digital token, marks the beginning of a downtrend. While falling Bitcoin prices have a direct impact on investors, miners are also the biggest victims of this scenario. Their income in Bitcoin as a reward for providing ming services will be affected. The costs associated with mining work are also high, and if the declining trend continues, many miners will quit their jobs due to the decline in income.
Bitcoin has lost almost 40% since it hit a record high in October. Following this fall, auxiliary cryptocurrencies like Ethereum and Solana also lost value. However, despite the plunge in prices, experts predict that the altcoin season, which will dominate the crypto market in January, is approaching. Ethereum signaled the altcoin season of November last year, which reached a record high without the help of Bitcoin. 2022 will be a year for them if other altcoins continue to dominate.
Basics of altcoin season
Generally, cryptocurrencies other than Bitcoin are called altcoin. Bitcoin emerged as the first successful blockchain founded in 2009, after which other altcoins have hit the market. Today, the altcoin market is made up of many facilities and investment models that stand side by side with BTC.
Increased use of altcoin and their dominance in the market are constantly driving investors during a period called the altcoin season when these digital tokens reach record highs. In 2021, many altcoins recorded significant growth, the highest ever. Many were growing faster than Bitcoin. During the Altcoin season, Bitcoin usually loses its advantage, paving the way for Altcoin to show its market presence. Therefore, the altcoin season usually occurs after the Bitcoin Bull Run.
Altcoin season approaching 2022
When the potential for the altcoin season became apparent in November, experts believed that the coin would eventually grow significantly. However, Altcoin has also experienced a period of stagnation in which the entire cryptocurrency market appears dark. However, there are many recommendations and predictions for altcoin exploding in 2022. In addition to Ethereum, other digital tokens are set to break through in January this year. Here are some of the altcoins that have amazing potential.
- Ripple is in a tough court battle with the SEC. If the results deploy in favor of XRP, it will push Ripple’s price to record highs in the coming days.
- Solana is a potential “Ethereum Killer” that recorded significant growth in 2021. The Solana platform has also recently attracted developers and projects.
- Decentraland hasn’t been a hot topic, but it has survived the 2017 Bull Run and is now prospering as one of the pioneers.
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