- Ellio’s Bullish Predictions: Ellio forecasts a significant Bitcoin bull run, followed by an “Intergalactic Alt Season” starting in February. He believes this cycle could be even more explosive than the previous one.
- The Role of Political Factors: Ellio highlights the impact of the U.S. presidential election and potential pro-crypto regulations on the market. He believes this positive political climate will further fuel the crypto bull run.
- The Importance of Capital Rotation: Ellio emphasizes the importance of understanding how capital flows between Bitcoin and altcoins during a bull market. He suggests that investors should focus on identifying undervalued altcoins that are primed for explosive growth.
Ellio Trades, one of the few crypto influencers who called the bottom on Bitcoin and has been spot on this bull run so far, has just laid out his predictions for how this market will unfold over the next few months. In his latest video, he highlights that he expects this bull run to outshine all others and to ensure we do not fumble our bags, he shares critical insights to mentally prepare us for what lies ahead. So, let us dive into the key takeaways.
Ellio’s Predictions
Ellio is back with bold predictions, forecasting Bitcoin to hit $120K by the U.S. presidential inauguration. However, he believes this milestone will trigger a classic “sell-the-news” event. According to Ellio, whales may use the hype surrounding the first “crypto president” to shake up the market, potentially driving Bitcoin back below the $100K mark.
Despite this, he does not see it as bearish. Instead, he believes it is the start of the next phase of the bull market, setting the stage for what he is calling the “Intergalactic Alt Season.” Starting in February, Ellio expects altcoins to explode as investors rotate funds from Bitcoin. This rally could last through March and potentially extend into May.
By summer, Ellio predicts a cool-off as traditional investors step away, aligning with the usual “sell in May and go away” trend. But this pause would not stop crypto’s momentum. He anticipates fresh narratives, like the resurgence of NFTs, to fuel market excitement later in the year.
Ellio’s Supercycle Theory
Ellio sees striking similarities between today’s market and the bull run from 2020-2021. Back then, Bitcoin’s breakout coincided with the U.S. presidential election, marking a low that the market never revisited. Now, as the 2024 election has wrapped up, he points to similar price momentum, suggesting a repeat of that pattern.
Moreover, Ellio highlights the unprecedented political support for crypto this time around. Notably, Senator Cynthia Lummis has introduced a bill to position Bitcoin as a U.S. strategic reserve asset. On top of that, rumors of a pro-crypto lawyer potentially leading the SEC could create the most favorable regulatory environment the industry has ever seen.
All of this combined is what Ellio believes will fuel a Supercycle.
Are Alts Dead Until Further Notice?
Ellio does not believe altcoins are dead—in fact, he thinks we are in a setup very similar to the last cycle, with explosive moves just around the corner. To illustrate, he points to the performance of key altcoins:
- Polygon – In November 2020, Polygon was trading at just $0.01. The real breakout began in February, where it quickly climbed to $0.40 by mid-March. By May, it had soared to $2—a staggering 200x increase within a few months.
- Solana – After the 2020 elections, Solana was trading at $2. By late January, it had doubled to $4.20, before making a massive jump to $44 by May. It ultimately hit an all-time high of $260 later in the cycle.
- Luna – In November 2020, Luna traded at $0.31. By late January, it reached $1.50, and in just one month, it skyrocketed to $20, delivering extraordinary returns.
Overall, Ellio’s key takeaway is that altcoins often lag behind Bitcoin during the early stages of a cycle, but when liquidity rotates into the broader market, their moves can be explosive. He believes this quiet period is setting the stage for a similar breakout in the months ahead.
Utility vs Meme Coins
While meme coins are the hottest thing right now, Ellio takes a bold stand and predicts that the real action in the next bull run will come from tech altcoins. He argues that while meme coins will continue to see gains, it is the established tech projects that are primed for massive growth.
He draws parallels to previous rallies in major altcoins:
- Ripple ($XRP) – XRP surged from $0.40 in the summer to $1.11 following news of the Trump election, showing a huge spike in both price and market cap.
- Cardano ($ADA) – ADA saw its market cap grow from $11.4 billion to $27 billion, demonstrating that even “dinosaur” tech alts can experience explosive price movements when least expected.
Essentially, in his view, while meme coins may continue to perform, it is the tech alts that will capture massive liquidity and experience insane market moves in the coming months.
Understand the Capital Rotation
To make money in this market, it is essential to understand how capital is moving from large-cap to mid-cap to low-cap coins. Ellio explains this capital rotation will take place in the following steps:
- Bitcoin leads the way – Initially, Bitcoin will drive the market, attracting most of the capital as it experiences its rally.
- Altcoins start to move – As Bitcoin’s rally cools, capital will begin flowing into altcoins, which will closely follow Bitcoin’s pace.
- Massive rotation into altcoins – Around late January or early February, liquidity will shift aggressively into altcoins, leading to explosive gains that far outpace Bitcoin.
Be Ahead of the Heard
According to Ellio, there is a pattern to how altcoins make massive price jumps, and it all starts with people giving up on them. Here is the cycle he outlines:
- People give up on certain coins.
- These coins become undervalued.
- They then experience massive price jumps, triggering FOMO.
- This causes more people to FOMO in, pushing prices higher.
- The cycle repeats, driving prices even further.
So, to be ahead of the herd, you need to position yourself when others are giving up—before the FOMO kicks in.
Final Thoughts
In conclusion, if Ellio’s predictions hold true, the next few months could be a thrilling ride for crypto investors. So, to avoid being caught off guard, stay calm, stick to your plan, and do not let emotions dictate your actions. The roller coaster is just beginning, so buckle up!
