The cryptocurrency market saw the prices of most coins fall as Bitcoin [BTC], the largest cryptocurrency, faced a significant fall on April 21. However, if Thomas Lee, a Bitcoin enthusiast, has to be believed, the correlation between Bitcoin and altcoins could bring in 1,100% gains similar to the 2017-2018 bull run.
Lee on his Twitter handle explained that the first “pre-condition” for the beginning of the alt-season is a drop in the correlation between altcoins and Bitcoin [BTC]. This trend was observed before the 2017-2018 bull run began. Lee produced a chart to mark the similarities.
On the chart above, Lee marked the correlation collapse from March 2016 to May 2016, March 2017 to May 2017, November 2017 to January 2018, and the current trend seemed to form from March 2019.
According to Lee, this correlation between altcoins and Bitcoin can register the previous alt-season gains of 1,100%.
“Will the next alt-season be as strong as the past? Given there are probably only ~50mm active wallets (vs 5 billion Visa/MasterCard accts), we think crypto still early in the adoption curve. So it should be similar”
However, the current 0.99% fall of Bitcoin [BTC] has caused many altcoins like Binance Coin [BNB], XRP, Ethereum [ETH], Litecoin [LTC], and Cardano [ADA] to fall by a huge margin. Out of the aforementioned coins, Litecoin [LTC] and Cardano have fallen by over 6% in the past 24 hours.
Bitcoin [BTC], at press time, was falling by 0.99% over the past day and was valued at $5,283.27. In the past seven days, BTC registered a growth of 3.64% and continued to rise by 0.30% within an hour. The market cap of the coin was $93.39 and 24-hour trading volume was noted to be $13.23 billion.
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Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.