{"id":8227,"date":"2020-02-22T03:09:12","date_gmt":"2020-02-22T01:09:12","guid":{"rendered":"https:\/\/forklog.media\/?p=8227"},"modified":"2020-02-23T00:03:26","modified_gmt":"2020-02-22T22:03:26","slug":"resurrection-of-altcoins-presumed-dead-is-no-zombie-apocalypse-but-something-else","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/resurrection-of-altcoins-presumed-dead-is-no-zombie-apocalypse-but-something-else\/","title":{"rendered":"Resurrection of Altcoins Presumed Dead Is No Zombie Apocalypse but Something Else"},"content":{"rendered":"

Bloomberg\u2019s recent article <\/span>noted<\/span><\/a> the rapid growth of certain altcoins which were long considered dead and gone. But due to cryptocurrency\u2019s decentralized nature, no altcoin is truly dead.<\/span><\/p>\n

<\/p>\n

\u201dCryptocurrencies just tend to zombify or fade away over time, rather than dying quickly,\u201d <\/i><\/b>Nic Carter, Coin Metrics co-founder, told Bloomberg.<\/span><\/i><\/p><\/blockquote>\n

In a matter of two months obscure and not very \u201calive\u201d altcoins like Einsteinium almost doubled in value. Bloomberg suggested several interesting reasons behind this spooky event and even went as far as to suggested that coronavirus was an important driving force behind it, which was perhaps a nod to some classic zombie epidemic movie.\u00a0<\/span><\/p>\n

So why are the dead rising? Voodoo and viruses are not to blame, rather it is a part of a broader trend, colloquially known as altcoin season. In this article, we will explain what is happening, contrary to Bloomberg\u2019s eschatological version.<\/span><\/p>\n

The Price Surge That Was Promised<\/span><\/h2>\n

The popular crypto trader known as Moon Overlord made two important predictions in 2019. Firstly, he suggested the pattern of the pre-halving Bitcoin pump.\u00a0<\/span><\/p>\n

https:\/\/twitter.com\/moonoverlord\/status\/1088184024395325446<\/p>\n

This observation turned out to be spot on, as Bitcoin started surging in April 2019.<\/span><\/p>\n

The same year Moon Overlord made another interesting prediction, which we can only now see unravel. Back in November 2019, he suggested that altcoins were entering an \u201caccumulation period\u201d which would last until 2020.\u00a0\u00a0<\/span><\/p>\n

https:\/\/twitter.com\/MoonOverlord\/status\/1147531567042088960<\/p>\n

Over the past months, we have witnessed a dynamic that may once again support Moon Overlord\u2019s prediction. While Bitcoin\u2019s price went up by around 35% since January, it was resoundingly outpaced by a number of popular altcoins.<\/span><\/p>\n

Alt-season Is Coming<\/span><\/h2>\n

Coin360\u2019s <\/span>chart<\/span><\/a> conveniently shows that quite a few important altcoins recently showed a by far larger growth than Bitcoin. Ethereum and Bitcoin SV even made a three-digit increase since the start of the year. These two, along with Ripple and Bitcoin Cash, are the largest cryptocurrencies on the market after Bitcoin with $50 billion combined capitalization.\u00a0<\/span><\/p>\n

People have been speculating ever since the previous bull market in 2017\u201318 whether there was still a real correlation between Bitcoin and altcoins. Cases were <\/span>made<\/span><\/a> that altcoins were widely underperforming comparing to Bitcoin and thus correlation was slowly eroding over time. But a more recent <\/span>understanding<\/span><\/a> is that when the market is bull-dominated, altcoins tend to closely follow Bitcoin\u2019s lead.<\/span><\/p>\n

Of course, there may be very tangible unrelated price drivers at play. For example, Ethereum may be surging in anticipation of the <\/span>Ethereum 2.0<\/span><\/a> launch scheduled for July 2020, which is expected, among other things, to introduce long-anticipated scalability improvements.<\/span><\/p>\n

Another important upcoming event is <\/span>Bitcoin halving<\/span><\/a>. In the past halving made Bitcoin starkly <\/span>outperform<\/span><\/a> altcoins. But experts have not yet reached consensus on the impact halving will have on the price this time, <\/span>if any<\/span><\/a>.<\/span><\/p>\n

Nevertheless, there seems to be an undeniable uptick in altcoin popularity in Q1 2020. Many suggest that the stars have aligned and the portents are clear that <\/span>altcoin season<\/span><\/a> is once again upon us. According to this poll, there is a growing trend in the community to heavily invest in altcoins.<\/span><\/p>\n

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How exposed are you to ALTs right now?<\/p>\n

— Loma (@LomahCrypto) February 4, 2020<\/a><\/p><\/blockquote>\n