In the last market cycle, the altcoin-Bitcoin pair fell in June 2019, just before the US Federal Reserve cut interest rates.
The chart patterns for this cycle are identical, and if history repeats itself, a similar final altcoin exodus could be imminent ahead of the Fed’s interest rate decision on June 12 this month.
However, crypto and stock markets fell over the weekend following the U.S. employment report, which could mean the Fed may keep interest rates on hold.
Alto season is almost here…?
Still, analysts are predicting that altcoin season is just around the corner. On June 8, crypto analyst “Moustache” compared the last market cycle to the current one, noting structural similarities and commenting that history doesn’t repeat itself, but it does rhyme.
Mikael van de Poppe, Co-Founder of MN Trading Commented Addressing the recent market correction in a June 8 post on X, he said he “expects a bullish breakout to occur next week,” adding that he “remains comfortably positioned” in altcoins.
Meanwhile, “Mister Crypto” told his 120,000 X followers on June 8 that Bitcoin season appears to have “bottomed out” and that altcoin season may soon begin.
Industry Observer “Victor” share A similar chart for X states, “This is the same situation as in October 2023 and the April 2nd crash.”
Bitcoin’s market share is one sure indicator that an altcoin rally is on the way: it currently stands at 55.2%, according to TradingView, and is up nearly 8% since the start of the year.
However, for the hopes of an altseason to actually materialize, Bitcoin’s dominance would need to fall below 50%, which is unlikely to happen for some time yet.
Altcoins remain in a bear market
Ethereum has been attracting a lot of attention as it often leads altcoin rallies, but ETH has also been falling in recent days, dropping 3.3% in the past week to $3,680 in early morning trading on June 9.
Altcoins are currently struggling even more, dropping across the board this weekend with Toncoin (TON), Shiba Inu (SHIB) and Near Protocol (NEAR) suffering major losses.
With the Fed leaving interest rates unchanged at 5.25% to 5.50% next week, the cryptocurrency market, especially altcoins, could see more volatility and pain before any big gains.
