As the crypto markets move sideways, a prominent blockchain researcher is analyzing whether another “altseason” could be on the horizon.
Head of research blockchain intelligence firm IntoTheBlock Lucas Outumuro notes in a recent newsletter that Ethereum’s (ETH) price against Bitcoin (BTC) has just hit a 42-month high.
He points out that the last two times Ethereum set new yearly highs were followed by “periods of high growth” for ETH and smaller-cap altcoins.
Explains the analyst,
“If ETH/BTC holds above 0.08 it could point to higher risk-appetite trickling down crypto markets.”
The blockchain researcher also notes that over the past seven years, non-Bitcoin crypto assets have historically averaged 38% returns in December, compared to 21% for BTC.
“Many in the market may be expecting bullish price action due to this historical precedent, though having grown by 30% already in Q4 this may already be priced in.”
The researcher submits that “altseason” itself may actually be an outdated term given the diffuse sectors of different altcoin projects.
“Different sectors within crypto have established their own trends throughout the past bull market, leading to lower correlations in longer time frames.
This became apparent with DeFi tokens in summer 2020, then with NFTs in the summer of 2021 and more recently with metaverse-related tokens.
Ultimately, this may mean if an ‘alt season’ comes, it could benefit certain sectors more than others.”
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The post Are the Crypto Markets on the Verge of an Altseason? Here Are the Metrics To Watch, According to Blockchain Researcher appeared first on The Daily Hodl.
