Russian cryptocurrency experts are predicting the return of “altseason” later this year, fueled by various global factors. However, they warn that this time around, the altcoin market surge won’t resemble previous cycles. Vagiz Nurullov, Managing Partner at VG GROUP, shared his views on the market’s trajectory, noting that the summer months tend to be less active for trading, particularly in the cryptocurrency space, which lacks the liquidity of traditional stock markets. As autumn begins, Nurullov foresees a more active market phase on the horizon.
Altseason to Start in November?
Nurullov highlighted that, despite September typically being a weak month for crypto, the market’s total value has increased by 7% since the start of the month, driven by higher trading activity and open interest. He suggested that this uptick could indicate the beginning of a more active market phase. According to the experts, much depends on Bitcoin’s performance, particularly its ability to break above the $65,200 mark to signal a shift from a downward trend to an upward direction.
Global Factors Driving Crypto Market Growth
Oleg Kalmanovich, an analyst at Neomarkets, echoed these sentiments, noting that several global factors could further fuel the market. Key among them is the U.S. Federal Reserve’s potential interest rate cuts, which could trigger growth in riskier assets like cryptocurrencies. Kalmanovich also pointed out that large capital is losing interest in low-yield dollar deposits, making altcoins an attractive alternative. Additionally, he suggested that the upcoming U.S. presidential election on November 5 could lead to increased market liquidity, benefiting crypto assets.
Altseason Won’t Be the Same as Before
While both experts are optimistic about the altcoin market, they cautioned that the upcoming altseason would be different from previous cycles. In earlier altseasons, traders had fewer projects to choose from. Now, the growing number of new crypto ventures makes it harder for traders to navigate the market. The first wave of growth is expected to arrive by early November, with a second wave potentially following by March 2024, though much will depend on the U.S. election outcomes.
Kalmanovich suggested keeping an eye on altcoins like NEAR, XRP, and Polkadot, which have lagged behind in growth this year but still have the potential to catch up, particularly as lower interest rates provide the fuel for further crypto market expansion.
Conclusion: A Cautious Optimism
While experts are bullish on the return of altseason, they advise traders to be cautious. The market has changed significantly, and navigating it may require different strategies than in past cycles. With multiple global factors at play, including U.S. Federal Reserve policies and the upcoming election, the market is set for a potential shake-up, but it won’t be the same as before.
