Historical Data Suggests Parabolic Altcoin Surge to Begin Soon
As Bitcoin rises to record highs, attention has turned to altcoin markets, which have seen big gains. Even though everyone is excited, many investors are cautious because they expect a correction. Comparing historical market data to current data reveals interesting patterns. After big Bitcoin price changes, the altcoin market seems to grow quickly. A prominent crypto analyst has analyzed the data from previous cycles.
Bitcoin’s 2020 Record Highs Triggered Altcoin Market Surge to $425 Billion in 2020
Bitcoin reached $1163 in April 2017, breaking its 2013 high. This breakthrough propelled the altcoin market from $1 billion to $78 billion in eight months. Many altcoins rose rapidly during this time. Some gained 100–1000 times their initial value. At the time, only about 1000 altcoins could be traded, so the market was still young.
Source: AshCrypto
In December 2020, Bitcoin reached $19,600, surpassing its 2017 high. This boosted the altcoin market again. Its market value rose almost 900% from $42 billion to $425 billion. Many altcoins gained 30 to 200 times their value during this time.
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Bitcoin again broke its record in February 2024. Based on past trends, the altcoin market could rise again in the coming months. The value of all altcoins on the market is about $337 billion right now, but it could go up to anywhere from $1 to $2 trillion in the next six months.
Historical Trends Hint at Potential Altcoins Gains Despite Market Growth
Understanding this expected parabolic move is crucial. There is a chance of corrections ranging from 20% to 30%, but investors stand to gain a lot, with returns possible ranging from 300% to 1000%. To maximize the expected rise, use dollar-cost averaging (DCA) with altcoins and hold them for 6–9 months. Some may say altcoins have grown a lot, but those who remember 2017 and 2021 know the biggest gains may still be ahead.
It is important to keep in mind that the point of this analysis is not to make people afraid of missing out (FOMO), but to give them information based on historical trends. Remember that $VANARY, $ICP, $LINK, and $DOT were worth $0.02, $2.92, $5, and $5, respectively, when Bitcoin was trading at $15,500.
