Crypto Alt Season Expected, But Has Margin Trading and IEOs Captured Retail Money?

Tony "The Bull" Severino

Last Updated: June 11, 2024 1:24 pm

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

It’s been a common thread throughout 2019 thus far: alt season. Crypto traders and analysts have been calling for a prolonged period where Bitcoin’s altcoin cousins significantly outperform the leading crypto asset, which helped propel the emerging asset class into the limelight at the end of 2017.

However, some crypto analysts speculate that the lack of an alt season occurring thus far in Bitcoin’s bear and bull market cycle, could be due to retail money flocking to exchanges offering margin trading, or due to the recent surge in interest surrounding initial exchange offerings (IEOs).

Bitcoin Dominance Breaks Down, Letting Alts Have Their Bull Run

Bitcoin dominance – the percentage of market share the first ever crypto captures compared to the rest of the market – has been growing in recent weeks as Bitcoin leaves the depths of its bear market lows in its dust.

After Bitcoin broke out, altcoins diverged and bled out to new lows relative to Bitcoin. But now that altcoins have finished bottoming out, Bitcoin dominance has begun to break down, and the first glimmer of an alt season is finally here.

https://twitter.com/bravadotrading/status/1136774423741161472?s=12

In the chart above, the total crypto market cap ratio against BTC appears primed for a powerful rally after painting a bottoming pattern similar to the pattern Bitcoin left on charts before skyrocketing back into a bull market.

If big cap alts continue a bullish trend they’re going to start to break off way larger gains. If that happens, the likelihood of new money buying $btc to buy alts with seems like a very probable outcome. Alt bull = strongest catalyst possible for #bitcoin bring on the #greed pic.twitter.com/nn257TmC70

— KJ Crypto (@koreanjewcrypto) June 6, 2019

Crypto analysts believe that if “big cap alts” like Ethereum, Ripple, or Litecoin continue their “bullish trend” larger gains aren’t far behind. Analysts further expect the surge in altcoins to drag Bitcoin up higher past overhead resistance and further be a catalyst for a strong crypto market bull run.

But Have IEOs and Margin Trading Diverted Retail Investment?

The capital fueling alt season has to come from somewhere, and given institutional focus on Bitcoin, the bulk of it is from retail investors hoping to find the next Bitcoin and become rich.

But the recent surge in interest around margin trading, and the emerging IEO trend may have captured much of that retail money, and it could prevent an alt season from ever getting started in the first place.

https://twitter.com/thinkingusd/status/1136716547051773953?s=12

Crypto analyst Flood believes that the “allure” of BitMEX and IEOs have taken a share of retail money that would have otherwise been “gambled on alts.”

According to the analyst, traders are getting their gambling fix from margin trading platforms BitMEX, and Deribit. Even Binance recently revealed their margin trading plans, and Coinbase has expressed interest in adding the feature in the future.

IEOs have absolutely exploded in interest, and Matic, BitTorrent Token, and the other tokens born from IEOs are among the most profitable coins of the year thus far. The returns on these early investments have been enough to capture much retail interest, and it could be part of why we’ve yet to see an alt season kick off in 2019.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.