JPMorgan: Altseason starts next month

Growing institutional demand for Bitcoin (BTC) has negatively impacted the possibility of an imminent altcoin season.

However, JPMorgan believes that there is not much time left to wait.

JPMorgan Expects Market Recovery

JPMorgan analysts expect the cryptocurrency market to recover as early as August. The company’s recent research report also suggests that there is a high probability of a reduction in liquidations by the end of this month.

However, the growing bearish sentiment has forced the bank to cut its net inflow forecasts for this year. The updated forecast suggests that the crypto market could attract $8 billion in investment, far below its previous expectations of $12 billion.

If BTC rises in August, as JPMorgan analysts suggest, altcoins could also recover. However, at least 75% of the top 50 coins, excluding stablecoins, need to outperform the leading cryptocurrency to kick off the altcoin season.

Altcoin Season Index. Source: BlockChain Center

When will altcoin season start

Altcoin season is a short period during which altcoins significantly outperform Bitcoin. Its beginning and end are determined by two key indicators: BTC dominance and the dynamics of other cryptocurrencies.

Despite JPMorgan’s positive outlook, it may be a while before a full-fledged altcoin season begins. At the time of writing, about 70% of cryptocurrencies have performed worse than BTC over the past 90 days.

The only coins that managed to outperform Bitcoin are Toncoin (TON), PEPE, BONK, Kaspa (KAS), Monero (XMR), and Tron (TRX). All other altcoins are suffering losses.

Altcoin Performance Compared to Bitcoin. Source: BlockChain Center

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