Bitcoin Hits $88K as Altcoin Season Looms & Halving Dynamics Boost Market Sentiment
Bitcoin Reaches New Record of $88,000 Amid Altcoin Season Speculation
Bitcoin had reached an all-time high of $88,000 on November 11th, and the crypto community started getting excited about the possible altcoin season. This price increase, analysts believe, coming in the wake of the 2024 U.S. presidential election and in light of recent support for Bitcoin ETFs by the SEC, may set up a strong move into altcoins such as Ethereum and Solana. With possible new regulation in store from the incoming administration, experts are really watching for a shift in momentum through the market to alternative digital assets.
Growing trend in the altcoin season index from BlockchainCenter.Net, which last flashed back in 2022. For the shift to officially take place, over 75% of other altcoins would have to outperform Bitcoin over a three-month period. Against a background of rising trading volumes and swelling demand for altcoins, some traders surely believe it may be time for this to occur in 2024.
Post-Halving Supply Shock Fuels Bitcoin Rally
Analysts say the recent rise of Bitcoin is not a function of political developments alone. Six months since the halving, dynamics are now tightening supplies, inducing a "supply shock" with the reward rate for miners being reduced to 3.125 BTC from 6.25 BTC. This inelastic supply, combined with strong demand from ETFs and other institutional investors, jointly helps Bitcoin shoot upward. For one day, November 11, ETFs saw inflows of almost 13,940 BTC, way beyond the 450 BTC mined daily.
That said, with large holders like MicroStrategy continuing to press on and top up reserves, analysts say Bitcoin's scarcity is likely to continue driving prices higher. Demand still stands strong, with only 1.2 million BTC left to be mined, and some predictions, if correct, may trigger broader crypto adoption and price gains after this post-halving momentum.
Conclusion
With new highs, strategic altcoin investments lining up for Bitcoin, 2024 might well be a transformative year in crypto. While this could mean the looming probability of an altcoin season, experts look to changes in regulation and market strategic shifts as harbinger catalysts that may bring realistic change to the wider crypto ecosystem.
