- Alt season has arrived after a two year wait, with huge gains across the board
- DREP, TFUEL, and QKC registered huge gains among others
- New money is not entering the space, with gains being recycled
Alt season has finally arrived, after two years and many false starts, with triple digit gains being seen across the board for the first time since 2018. Coins such as DREP, TFUEL, and QKC have seen huge one-day gains to give the crypto world a reminder of what a real alt season looks like, although there is a note of warning to be carried through this particular incarnation.
Bitcoin Gains Moved into Mid Caps
There is no clear definition of what an ‘alt season’ actually is, but most people in the crypto world take it to mean a period of time when alt coins enjoy three or even four figure percent gains following a big Bitcoin run. We are certainly enjoying such a period right now, following Bitcoin’s halving-inspired run from $3,850 to $10,000 in the space of ten weeks.
That money has to go somewhere, and it’s clear that rather than leaving the ecosystem, as has happened in previous short-term cycles, it has filtered down into alts, this time bypassing the big caps which enjoyed a recent run, and has gone down instead to the mid and some small caps, hence why the gains have been so dramatic – DREP jumped 150% in 24 hours, while TFUEL has been at it for almost a whole week, rising a sensational 666% since May 21.
These moves come off the back of DGB rising over 100% during the month of May alone, with RDD putting in an almost identical performance this month.
Analyst Poses Word of Warning
While it is undoubtedly fantastic news that there are finally tremendous gains to be made with the right alts, our in-house analyst Will Gambit of CryptoDayTraders has a word of warning about what could be to come:
My only bit of trepidation here is that from my looks this is a market maker-induced phase. The alt coin market cap has not increased significantly the past few days, and liquidity is flowing from alt to alt, especially for the big moves, but this is NOT new money coming in yet.
We are therefore still not at the point of euphoria or the point where “no coiners” are putting new money into the markets yet. If this is sustained then that could be the case, but I would advise everyone trading this alt season to be careful and use stop losses.
Sage advice indeed, as January 2018 proved that alt seasons can disappear as quickly as they come.