$111K Bitcoin? Analysts Say It’s Time to Look at Altcoins

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Bitcoin soared to a record high above $111,000 on Wednesday, marking a significant milestone in the ongoing crypto bull cycle driven by institutional demand and favorable macroeconomic winds.

Since May started, Bitcoin has increased by more than 18%, mostly because investors are putting more capital into spot BTC ETFs listing in U.S. markets. Investor interest in these vehicles has added over $2.8 billion to their volumes this month, making the total ETF BTC holdings more than $122 billion, according to Reece Hobson.

ETFs and Halving Fuel Bitcoin’s Rise

Bitcoin's Rise

The previous rise of BTC to $111,000 was driven by several different factors, Hobson pointed out to Decrypt. With the arrival of BTC ETFs in the U.S., big orders from institutions have been investing in crypto and the April halving has lowered the number of Bitcoin’s available.

Along with ETF interest, overall trends in the economy are making a positive impact. Experts say that inflation in the global money supply, the weakening of the U.S. dollar and increased global tensions are all driving BTC’s latest gains.

Bitcoin Dominates, Altcoins Wait Their Turn

This macro environment reminds some of previous bull markets, when Bitcoin benefited from a weaker US dollar and stimulus programs. Although central banks have yet to say they are returning to quantitative easing (QE), the economy’s declining indicators are leading the markets to expect it in the near future.

Despite BTC’s popularity, the rest of the altcoin industry has remained calm. Strong BTC price movements have in the past triggered an “alt season,” where alternative cryptocurrencies increase in value together. Still, many financial experts say the market isn’t ready for this yet.

Bitcoin Price Discovery Delays Altcoin Boom

Bitcoin Price, Altcoin Boom

According to Hobson, the start of alt season will be triggered by two main events. Quantitative easing should take place, helping the market get more liquid and Bitcoin needs to increase its share of the market to 70%.

According to data provided by CoinGecko, BTC controls more than half or about 61%, of the crypto market. Coinstash co-founder Mena Theodorou thinks another major altcoin rally is unlikely in the near future due to BTC’s current phase.

Ethereum Lags as Solana, Sui Gain Ground

As the value of BTC is being established, it draws much of the market’s liquidity into its trading, Theodorou said to Decrypt. We expect select altcoins and niche sections to benefit, but do not expect a general consolidation.

Although Ethereum is known for smart contracts, its price has been slow to match those of rising blockchain projects. Some investors are moving toward Solana and Sui because they are faster and have a rising number of builders using them.

The market is largely driven by news about BTC, according to Hobson. Alt seasons might come as BTC continues to lead the market.

Conclusion

As Bitcoin continues to dominate the crypto spotlight with its record-breaking rally, investors remain watchful for signs of an altcoin resurgence. With the broader market waiting for important catalysts including quantitative easing and more BTC usage, some altcoins might still rise in value among the ongoing BTC momentum.