“Bitcoin is completely crushing the Altcoins”: Kmanus

Bitcoin (BTC) has been a bullish trend for two years, while the Altcoins (cryptocurrencies without counting BTC) are not showing significant yields, something that is impatient some traders who crave an Altseason.

“There is a lot of noise around the possibility that there is no Altseason. This fear is that Bitcoin is working very, very good. However, the Altcoins have a period that rise and suddenly correct everything they upload and in some cases even more, ”says Manuel Terrones Godoy (Kmanus).

For the Argentine influencer, The arrival of an Altseason is not ruled out, but it could take more than expected due to several factors. This is stated in his most recent video on his YouTube channel, Kmanus88, published the last week.

The growing Bitcoin dominance in the total capitalization of cryptocurrencies is one of the reasons. Currently, it is around 64% and considers that it would not be surprising to see it reach 70% or even more.

In other words, this demonstrates a greater interest in Bitcoin than for the Altcoins, as confirmed by the following dominance chart.

Caused by high interest rates, There is currently not much liquidity in the world that enters strong risk assets such as AltcoinsSustains the specialist. Instead, the capital that enters the market is flowing to Bitcoin through the quoted funds (ETF).

“Institutions are buying. ETFs are a mega ultra success. Countries are interested. The retail sells, but it is truly a flow of money that is going from retail to corporations, countries, central banks and also the average institutional. ”

Manuel Terrones Godoy, communicator.

When the liquidity in the markets is low, investors prefer safer assets. This causes capitals to concentrate on assets such as Bitcoin instead of dispersing among the Altcoins.

«The very high risk assets need liquidity to rise. What is liquidity? Money flowing in the world, ”he details. Unlike what has been seen now, In the last bullish cycle, which occurred in 2021, the low interest rates in the world led to a strong Altseason.

In the current cycle, “Bitcoin is completely crushing the Altcoins,” says the specialist, with a clear trend of dominance in capitalization and new maximum historical prices, as seen below.

Although there are small periods where Altcoins show temporary rebounds, Kmanus88 explains that these movements usually occur after a strong Bitcoin rally and do not represent a true Altseason.

“These oasis where for a month or two months the Altcoins go up and it seems that they will beat Bitcoin, but no, then they stick it completely,” he says.

Factors that can boost the altseason

Despite the current scenario, Terrones identifies a key event that can change the situation and start a true Altseason. It is a change in the monetary policy of the United States, which believes that it probably happens.

Currently, the Federal Reserve (FED), the United States Central Bank, maintains a restrictive position to control inflation. However, If the strategy changes, injecting more money into the economy, Altcoins can benefit significantly.

While the Fed, organism led by Jerome Powell, has cut the interest rates three times, these are still high and the rhythm of reductions has decreased, as the following graph exhibits.

In addition, the president’s establishment, Donald Trump, to products entering the United States, has fueled the fears of inflation and less feats of fees, as cryptootic reports. However, Kmanus88 warns that the Fed probably loosen the rates, due to the pressure generated by the government.

“The goal of Jerome Powell is to do what is called ‘soft landing’, that is, that inflation falls and we do not enter recession. Trump has another objective: that the market, the stock market, starts ‘pumpear’. For that, you need to stimulate the economy and require the interest rate and finish the adjustment. Trump is getting a lot of pressure and will eventually achieve it. “

Manuel Terrones Godoy, communicator.

For the specialist, “that moment will come.” He clarifies that, although Trump is unpredictable, it begins to be clearer what will happen: in his opinion, a reduction of rates that drives markets. So, in such a scenario, Wait for Altcoins to begin to gain dominance.

Anyway, it does not predict this in the short term. “The graph of here what points me, boys, is that Bitcoin will continue to win the Altcoins. Now we would be at a time where BTC could shoot himself, ”he emphasizes, in tune to projections from other specialists.

Only next month or even later, consider that the injection of liquidity could reach the economy that changes the equation and allow an Altseason. “This cycle can be much stronger than 2021, but not yet,” he exclaims. In his opinion, it is necessary to see that change of the Fed.

Next, it can be seen what are the next dates in which the Fed will decide whether it goes up, down or keeps the rates the same, so the markets could be agitated before the decision.

«This is not bad; I’m super bullish, ”says Kmanus88

Another factor that could promote an Altseon, according to Kmanus88, is an event of crisis that forces money impression. As happened with the Covid-19 pandemic in 2020, this could cause the liquidity available in the economy to enter the markets.

The specialist distinguishes that the massive impression of money would again boost the speculation in the cryptocurrency market and, therefore, its prices. “But if nothing breaks and we don’t see markets destroyed by bad news, then there is the Powell fight against Trump (adjustment against expansion) is what we are seeing now,” he says.

“In the end Trump will win, but how long it will take long to win depends on whether something is broken or not and the pressures he can put. This is not bad. I’m super bullish [alcista]. I could mean that the four -year cycle breaks. The cycle could even be longer. “

Manuel Terrones Godoy, communicator.

With this in consideration, the investor advises to keep caution and analyze the day to day to operate based on the development of the environment. “We are at a time where you have to take quick gain: I won a little, I sell, I won a little, I sell,” he says. In his opinion, This is currently the strategy that works.