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Ethereum & co., What does the future hold for altcoins?

For many cryptocurrency analysts, the presence of some altcoins of various capitalizations, which have been the protagonists of massive rallies, have been the "spy" of a topic that periodically returns to the fore. That is, we are or are not at the dawn of a successful season for alternative currencies a Bitcoin?

The answer, according to a recent focus by News BTC, is far from positive. A focus which, moreover, goes so far as to affirm that if there has ever been a new season of altcoins, that season is probably already over. But why?

Although it was mainly the cryptocurrency low cap to give the greatest satisfaction in recent years, are still the "major" high cap altcoins, such as Ethereum, XRP e Litecoin, to lead the rest of the cryptocurrency market, often in strong relationship with Bitcoin.

In fact, almost all the altcoins on the market share their trading pairs not only with fiat currencies such as the dollar, but also with BTC. Because of this, analysts pay close attention not only to the altcoin / BTC trading pairs but also to the overall dominance of Bitcoin.

While trading pairs that have the dollar as their counterpart are often able to provide analysts with pretty accurate information about the overall health of the cryptocurrency space and Bitcoin itself, trading pairs that have Bitcoin as their counterpart give a better idea of ​​how altcoins will behave relative to the first ever cryptocurrency.

By limiting ourselves to the single most important altcoin, Ethereum, several fundamental signals could actually instill the necessary confidence in the market. The imminent launch of Ethereum 2.0 causes investors and market participants to speculate on whether ETH is preparing for a big step forward.

Santiment, a behavioral analytics platform, also noted that some Reddit users are becoming strongly bullish, and that as the days go by, this trend is strengthening. Another little curiosity: the changes in the number of followers on the official Ethereum account on Twitter add credibility to the bearish outlook. For a year now, this indicator seems to be highly correlated with the price action of this altcoin, so much so that every time Ether's number of followers on Twitter decreases, its price tends to follow it.

Furthermore, of all Ethereum addresses, over 52% are currently "In the Money", while over 45% are "Out of the Money", according to the "In / Out of the Money Around Price" (IOMAP ) by IntoTheBlock. These figures may indicate that, as seen on Reddit, ETH holders are quite confident about what the future holds.

 

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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