Where Crypto Stands 22 Days Before the U.S. Election

Altcoins and Regulatory Barriers 

Ki Young Ju, CEO of CryptoQuant, points to regulatory challenges as a reason some altcoins haven’t fully appreciated. One example he highlights is Uniswap (UNI). Since 2022, Uniswap has been considering a “fee switch” mechanism, which would redistribute protocol fees to UNI token holders. However, there are concerns that this feature might lead to UNI being classified as a security, which could expose the project to legal risks. 

In April 2024, the SEC issued Well Notes to Uniswap, prompting a delay in the fee switch proposal. Ki Young Ju believes that if the fee switch is eventually activated, UNI holders could use the redistributed funds to boost the token’s price. He also suggests that if Donald Trump wins the election, new regulations might clear the way for the fee switch, which could drive UNI prices higher. 

Altcoin Surge Based on Historical Trends 

Other analysts are looking at past market cycles to predict an altcoin rally after the election. CRG, a popular analyst, compared Bitcoin’s current price movements to its late 2020 cycle. He noted that more than 100 weeks after Bitcoin hit its bottom, its price tends to peak. This is often followed by a strong altcoin rally about a week later. 

Currently, Bitcoin’s dominance is at 58%, with no immediate signs of correction. A drop in Bitcoin’s dominance could indicate the start of an altcoin season, as more investors shift towards alternative crypto assets. 

Michaël van de Poppe, another well-known analyst, expects an altcoin season to begin within the next 15 days. He bases this prediction on the altcoin market capitalization (TOTAL3). According to his timeline, altcoins could experience a significant rally after the election, especially if Trump wins. Historical data suggests Bitcoin has seen its best growth during Trump’s presidency. 

Potential Altcoin Season Timeline 

With the election fast approaching, crypto markets are on edge. If certain regulatory hurdles are lifted, and historical patterns repeat, altcoin investors may see significant gains soon.