The crypto market experienced a substantial shift toward bullish sentiment following Donald Trump’s victory in the November 5 U.S. presidential election. Analysts highlight the election’s impact on the market, with the recent rally indicating a potential alt season, particularly marked by surging altcoins. Data from TradingView reveals that the altcoin market cap (TOTAL2) climbed above a critical resistance level, sparking excitement across the market. Last Wednesday, TOTAL2 surged past the $1 trillion mark, signaling a possible breakout from a prolonged consolidation phase and igniting hopes that an alt season may be underway.
Source: TradingView
Alt season, a rare yet intense market period, occurs when altcoins, such as Ethereum and other non-Bitcoin cryptocurrencies, significantly outperform Bitcoin during a bull run. Periods like these remain short but eventful, with potential that thrust several altcoins to their new all-time highs. According to figures from beneficial ownership sources in 2024, Bitcoin accounted for most capital inflows within the crypto market business. Though a current trend shows this may change, analysts proposed that altcoins, a significant change in the ecosystem, could drive the next bull market.
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Bitcoin’s Rally as a Prelude to Alt Season
Historically, alt seasons follow an initial Bitcoin breakout, commonly called a “Blue Sky” breakout. As discussed by the analysts, the Trump presidency and Bitcoin are at a new correlation high, making the market confident and speeding up this shift. People pointed out that the rise in capital coming into BTC is frequently followed by increased levels of capital across the entirety of the Crypto market before they drop, paving the way for altcoins to rally.
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In line with this pattern, crypto analysts expect Bitcoin to continue its upward movement in the early stages of the bull phase. This phase is usually pulled back to kick start the alt season as investors move money from BTC back to other altcoins. For many crypto enthusiasts, the period between November 2024 and March 2025 will be pivotal, with well-timed investments in altcoins potentially delivering substantial returns.
Conclusion
With Trump’s victory and Bitcoin’s record highs, the crypto market shows promising signs of a new alt season. As altcoins break key resistance levels, market participants eagerly anticipate the coming months, when strategic timing could play a decisive role in capitalizing on the market’s bullish momentum.
Also Read: Bitcoin Surges to Record $75,000 Following Trump Victory, Boosting Market Optimism
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.