For Alt Seasons to Happen Bitcoin Should Push Even Higher
Stable coins and Altcoins are making it to the spotlight as talks are out about the unveiling of Facebook’s Libra.
Facebook, in its latest effort to work its way beyond social media, is gaining prominence. Libra is set to be backed by real-world assets, which includes bank deposits and securities from the government in the short-term. With all these features, it might so be that the Facebook cryptocurrency might be stable than all other cryptocurrencies.
The idea of stable coins to overcome the difficulties caused due to the wild swings in the price of cryptocurrencies. Apart from USD and fiat currency backup, there are some algorithms used to keep the value of the coins stable.
Some people were trying to do crop insurance with cryptocurrency, and that would not work as the asset moves 10% day by day. Peter Smith stated, “It just doesn’t work.”
For now, the high profile stable coin is Tether; however, the token faced an uphill struggle to gain full acceptance of cryptocurrency.
Thomas Puech, Enigma securities stated, “If they feel Bitcoin is going to go up or down, they prefer to cash out to a stable coin — it allows them to trade quicker, and get back into the market.”
There are several other small value Altcoins like TCAT tokens and several hundreds of them moving up and down on the trends chart. While the Giants are fighting for dominance, the real Altseason is not anywhere near around the corner.
The price of Bitcoin is continuing to rise; however, the Altcoins are bleeding in USD values and relative to their trading pairs. Several Altcoins are being dumped for investment into Bitcoin. Investors are not willing to risk the regulatory pressure, where several cryptocurrency exchanges are cutting off their user base.
The market was eyeing a massive head and shoulders pattern, and the market was continuing to rally towards $10,000. If alt seasons should happen again, Bitcoin should push even higher.
Altcoins have been in their most prolonged accumulation period. However, several Altcoins have been primed with technical indicators which promise that these coins will significantly outperform the Bitcoin in the forthcoming months.
However, the potential for Altcoins season is as far as two years away according to some. The momentum for the Bitcoin which has been transitioning from the bear market to the bull market is strong. Just like the Bitcoin showed a low when no one expected it, the altcoin might show a high when no one expects it.
By DAN SAADA