The crypto market is bracing for heightened volatility ahead of the Us election results, with Bitcoin dominance reaching its highest level since March 2021, while altcoins face a stronger correction.
Along with the Bitcoin BTC $94 012 24h volatility: 0.7% Market cap: $1.87 T Vol. 24h: $16.92 B price retracement under $70,000, the altcoin market is facing an even stronger correction. The crypto market is bracing for volatility ahead of the US election results and the Fed rate cut announcement this week.
ITC Crypto founder Benjamin Cowen stated that there could be more pain for the altcoin market before the altseason resumes. He also predicted the final ‘altcoin reckoning’ by December 2024. “It looks like the grand finale of the altcoin reckoning has finally arrived,” said Cowen, in a post on the X platform.
Besides, Cowen also predicts the altcoin reckoning to be over by the second week of January 2025, at the latest. “It has been a long journey, and many gave up along the way, but this process was always going to play out,” he said.
The forecast draws from a similar final “flush-out” event that hit altcoin markets during the 2019 bear market. Cowen showed that the current altcoin market capitalization charts reflect a comparable pattern. Altcoins gradually recovered in 2020 before reaching new highs in 2021, and the analyst suggests this scenario could unfold again in 2025.
Altcoins Face Major Correction against Bitcoin
In another post on the X platform, Cowen said that the ALT/BTC pairs have continued to bleed for nearly three straight years while adding that the last two altseasons occurred in the post-halving years of 2017 and 2021.
In a post earlier today, November 4, another trader “ardizor” predicted something similar adding that the altseason patterns similar to 2017 and 2021 are “happening again after three years”. Crypto investor “Sensei” shared with his 60,000 followers on X that “the biggest altseason ever will start in less than 10 days.”
As of now, the Bitcoin dominance in the broader crypto market has surged to 60.5%, the highest level since March 2021. Any significant movement for altcoins is unlikely until BTC’s market share drops below 50% again.
Crypto markets retreated over the weekend, bringing total capitalization down to $2.4 trillion by Monday, November 4. Altcoins bore the brunt of the losses: Ether ETH $1 803 24h volatility: 0.3% Market cap: $217.60 B Vol. 24h: $11.59 B and Solana SOL $146.9 24h volatility: 3.2% Market cap: $76.00 B Vol. 24h: $2.61 B dropped 11% from their October 30 highs, while BNB BNB $600.1 24h volatility: 0.4% Market cap: $87.55 B Vol. 24h: $642.56 M lost 8%. Meanwhile, Bitcoin has only dipped 5.8% since reaching $73,000 late last month, continuing to dominate the crypto market.
🐳 With this week being headlined by the US announcing the results of a particularly polarizing election (to say the least), crypto traders are 'expecting the unexpected'. This is particularly true with Bitcoin's whales, which have been showing declining amounts of transfers… pic.twitter.com/nvhVAb5jAP
— Santiment (@santimentfeed) November 4, 2024
According to Santiment, crypto traders are bracing for volatility this week as the US approaches results for a highly polarized election. Traders, particularly Bitcoin whales, appear to be on alert, “expecting the unexpected”. Whale activity has notably declined since last week’s spike in transfers, which occurred near Bitcoin’s recent peak, signaling caution among major holders.
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