Altcoins to Stay Volatile Until Bitcoin Breaks $100K, Say Analysts

“We’re really waiting to see that exuberant move, and then we’ll look at that rotation of capital,” Hundal remarked during Aus Crypto Con 2024.

Altcoin Volatility: Patterns of Rallies and Retracements

Despite some standout performances among altcoins and memecoins, Hundal warned that most altcoins will continue to experience sharp rallies followed by quick retracements. He noted, “They might see a 20%, 30%, 40% gain, but then it’ll retrace most of that move the next day.”

For example, Solana gained nearly 13% on Nov. 21 but gave up those gains within five days. Similarly, memecoin PEPE surged 93% on Nov. 15 following listing announcements but retraced 22% the next day.

Bitcoin Dominance: A Crucial Indicator

Bitcoin dominance—currently at 58.3%, according to TradingView—plays a pivotal role in shaping market trends. Hundal predicts dominance could rise to 65-70% before altcoins regain momentum.

However, CryptoQuant CEO Ki Young Ju warned that institutional investors driving Bitcoin's rally are unlikely to rotate funds into speculative altcoins, dampening the likelihood of a traditional altcoin season.

“For altcoins to reach new all-time highs, significant fresh capital inflows to crypto exchanges are required,” Ju explained.

While Bitcoin nears $100K, analysts suggest altcoins may struggle to gain sustained traction until broader liquidity returns to the market.