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Will Altcoin season come in June?

The Altcoin season’s expectations fade, as modern indicators indicate twice the momentum. While the upcoming FTX payment of $ 5 billion on May 30 can pump new liquidity into the market, the capital is transferred to Bitcoin.

BTC dominated, the ETH/BTC ratio decreased, indicating that Altcoins loses strength. The Altcoin season index fell to 25, confirming that Bitcoin is still in control of the current time.

FTX payment worth $ 5 billion

FTX will distribute more than $ 5 billion to creditors on May 30, which represents one of the largest payments for one day in the date of encryption bankruptcy.

Many analysts believe that sudden liquidity injections can indicate Altcoin momentum in June, where receivers may look forward to their investment in the market.

BTC dominance ( %). source: Tradingvief.

This optimism briefly corresponds to the market structure – between May 7 and May 13, bitcoin dominance decreased sharply from 65.5 % to less than 62.2 %, a decrease of approximately 5 %, which led to the strengthening of speculation that the altcoin season is ongoing.

However, this feeling has been cooled since then: from May 14 to May 20, the dominance of BTC increased by 3 %, reflecting a lot of the conversion of the previous week and suggesting the capital returning to Bitcoin.

Another main signal, ETH/BTC ratio, tells a similar story. Between May 7 and May 13, ETHEREUM has gained significantly against Bitcoin, with an increase of 38 %, which increased the belief that the outbreak of Altcoin was broader.

Eth/btc ratio.
Eth/btc ratio. source: Tradingvief.

But in the following week – from 14 to 20 May – the same percentage decreased by 8.7 %, indicating twice the relative strength of ETH and expectations.

These transformations indicate that although FTX batches may pump the new capital, the Altcoin season loses momentum – at least at the present time.

ALTCOIN momentum fade when the index strike 25 – Will FTX liquidity change that?

The total maximum Crypto market, with the exception of Bitcoin, is currently $ 1.17 trillion, an altitude of $ 1.01 trillion on May 7, but a sharp decrease from $ 1.26 trillion on May 13.

This trend indicates that although Altcoins saw a short wave of flows in early May, the weakened momentum, with nearly $ 90 billion in area in only one week. The withdrawal highlights the lack of sustainable confidence in the full -scale Altcoin gatherings.

Crypto Total Market Cal (except BTC).
Crypto Total Market Cal (except BTC). source: Tradingvief.

However, the next liquidity injection of $ 5 billion of FTX payments on May 30 can restore the capital that the capital needs to momentum and may raise the Altcoin season in June.

Meanwhile, the Altcoin season index, which was followed by Coinmarketcap, decreased from 43 on 9 to 25 May – it is entered into the Bitcoin area.

Altcoin season index.
Altcoin season index. source: Coinmarketcap.

The index measures how much 100 coins (except Stablecoins and the assets wrapped) have surpassed bitcoin over the past 90 days. A degree higher than 75 Altcoin signals, while less than 25 indicates bitcoin hegemony.

With only a quarter of the metal currencies that surpass BTC, the index confirms that Bitcoin is currently returning to control, although the upcoming liquidity increased may still fluctuate the direction.

Disintegration

In line with the guidance of the confidence project, this price analysis article is for media purposes only and should not be considered financial or investment advice. Beincrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always perform your research and consult with a professional before making any financial decisions. Please note that the terms, conditions, privacy policy have been updated and the evacuation of responsibility.

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