According to analysts, the cryptocurrency market may be on the verge of a new altcoin season. In the last 24 hours, Bitcoin's dominance in the market has fallen by 2%, while the prices of many altcoins have risen.

Ethereum has started to rise against Bitcoin, which is often a signal that tokens are about to outperform it. If Bitcoin's dominance falls more than in 2021 to 40%, the market may show even greater growth of altcoins.

The main factor behind this growth is the global money supply M2, which tracks the total volume of money circulating in the economy. Historical patterns show a strong correlation between this indicator and movements in the cryptocurrency market. As more money enters the system, especially from countries like China, the UK, and the EU, crypto assets absorb a portion of these funds.

Meanwhile, the fear and greed index still reflects the caution of retail investors, who are not quite confident in the altcoin rally.

Crypto analyst Danny reminded that statistically, the second quarter was the strongest month for the cryptocurrency market, and May typically showed the highest growth for altcoins.

In his opinion, the altcoin season begins when Bitcoin's dominance starts to decline, and altcoins test their support levels three times, forming what is known as a "Triple Bottom."

This graphical pattern is considered a bullish reversal, and according to Danny, it is exactly what is forming in the market right now. He does not rule out the possibility of a 100-fold increase.