With Bitcoin back above $5,000, there are signs to suggest that the bear market might be coming to an end. This has surprised quite a few who expected it to drag on a little while longer. I was one of them.
Of course, this may still happen, but there are signs that we are beginning to reverse the trend. I also expected the bear market to be more cruel to the thousands of altcoins currently in circulation.
However, the new reversal may have saved the altcoins from destruction.
After the bear market of 2013/14 and even into 2015, the amount of altcoins that slowly bled to death was huge, and they were eventually replaced by newcomers such as Ethereum. You only need to compare the history of CoinMarketCap’s top 10 throughout the years to see how many have fallen by the wayside.
With the ICO craze of 2017, the amount of overhyped altcoins reached spectacular new heights. Many didn’t even offer a product and even failed despite rising prices.
Yet, with the recent bear market, many have managed to cling on for dear life and could be given a new boost should money return to the market.
This doesn’t necessarily mean that they won’t fail in the future – they might carry on for a few more years before they are found out to be near enough useless. The pain might not be over though depending on how the market reacts.
If Bitcoin continues to rise, it may suck much needed capital from alts back into Bitcoin. However, summer in the UK has often been a sign of what is known as “altseason” – the time when altcoins thrive. Should people see a positive overview of the market, more money is expected to flow into altcoins as traders seek greater returns.
I expected many more weeks of a crypto winter and for many altcoins to fall by the wayside. Whether good or bad, this market reversal may have just given these altcoins a lifeline.