Analysts predict the start of the altcoin season

The cryptocurrency market is gearing up for new heights as traders expect the value of Bitcoin BTC $94,531.57 Bitcoin 0.06% Market capitalization $1.87 trillion VOL. 24 hours $3.08 billion to reach $ 100,000 in the coming months. This is 10% higher than the previous record of $ 93,000. Therefore, analysts predict that the growth of Bitcoin will contribute to a new «altcoin season».

The analysts named two main factors for bitcoin’s growth:

• Regulatory changes in the United States: expectations of new rules favorable to cryptocurrencies fuel investor optimism.
• Strong support from institutions: companies such as MicroStrategy and Metaplanet continue to actively buy BTC. MicroStrategy already owns 1.5% of the total amount of Bitcoin.

Cryptocurrency strategists at QCP Capital argue that political support and growing institutional interest make the $ 100,000 forecasts realistic.

According to analysts, for the start of the «alt-season,» Bitcoin’s dominance in the market should decrease from the current 60% to less than 58%.

This may happen amid the expected pro-cryptocurrency initiatives of the new US administration after Donald Trump’s election victory.

Cryptocurrency strategists have identified two possible scenarios for the future of bitcoin:

• optimistic: some banks and analysts predict that Bitcoin could reach even $ 200,000 in the long run.
• pessimistic: some experts warn of a possible «blow-off top», after which the price of Bitcoin could plummet to $ 60,000.

It is reported that Bitcoin’s volatility has slowed down after breaking the $ 90,000 mark.

Thus, the US Federal Reserve’s restrained interest rate policy may dampen investors' interest in cryptocurrencies.

Therefore, despite positive forecasts for Bitcoin’s growth to record levels, the market remains unpredictable. Investors should take into account the risks of possible fluctuations and falls, especially in the face of high expectations.