Bracing themselves against a turbulent market, investors want to know whether the dip in cryptocurrency prices is over.

All asset classes are feeling the ripple effects of Wall Street’s jitters over lackluster gross domestic product (GDP) data, persistent inflation, and the Fed’s reluctance to ease interest rates.

But could there be a glimmer of hope in the altcoin arena?

Wall Street Worries

The economic indicators currently paint a somber picture. In the first quarter of 2024, the U.S. GDP slowed to 1.6%, below estimates of 2.4%. In addition, the Bureau of Economic Analysis has reported that inflation — as measured by the Personal Consumption Expenditures (PCE) price index — rose 2.7% in March on a year-over-year basis.

The Fed’s reluctance to ease rates, maintaining them between 5.25% and 5.5%, has only added to the unease. This economic uncertainty has triggered anxiety on Wall Street, casting a pall over the once-vibrant crypto market.

Pair these Wall Street worries with the fact that the recent run in the crypto market has been powered by the release of the new spot Bitcoin (BTC) ETFs (exchange-traded funds) and you can see how all of this anxiety has affected the crypto market.

Institutional inflows to the ETFs have slowed down over the last few weeks. Additionally, we have yet to see any significant increase of retail money in the cryptocurrency market. This has left the crypto market in a troubled position.

Crypto Prices Corrected for the First Time in 2024

If you’ve been keeping up with these articles or watching the crypto charts, you’ll know that cryptocurrency prices have been on the decline.

After many months of a red-hot bull run, the market has cooled off for the first time this year. This correction started around mid-March and has continued for nearly two months.

For example, by May 1, Bitcoin had dropped by about 23%.

However, while the amount of the price drop is important, it’s the length of this correction that we should focus on. Considering that this is the first real crypto correction in about a year, it’s not unusual that it has continued for so long. The longer this correction lasts, the more likely it is that each new low will be the last.

Prices have stabilized above $62,000 after the May 1 low of under $57,000. If BTC can hold these levels for about another week, we will become more confident that May 1 was the bottom of this dip.

We are also getting signs elsewhere in the market that things may be turning around.

A Shift in Bitcoin Dominance

Bitcoin dominance — the measure of Bitcoin’s market cap relative to the rest of the crypto market — remains around 55%. The coin has been on an upward trajectory since the end of the last crypto bull market. This is a very elevated level for a crypto bull market, especially considering the growth in other crypto sectors.

In order for altcoins to truly rally in explosive bull runs, Bitcoin dominance must drop. When Bitcoin dominance trends downward, we tend to witness an altcoin season. So far in 2024, we have not seen any such thing.

Altcoins Recovering So Far

While Bitcoin dominance holds firm, the altcoin market tells a different tale. Many altcoins have weathered corrections of 40% to 50%, with some now showing signs of bouncing back from recent lows.

The question looms: Have altcoins hit the bottom before their blue-chip counterparts? Oversold conditions and early signs of recovery suggest a potential reversal might be in the making.

While every altcoin chart looks a little different, most are showing early signs of a bounce from their lows. Many altcoins hit bottom in mid-April, as opposed to May 1 for the blue-chip cryptocurrencies.

Remember, the altcoin market tends to trade with higher volatility than Bitcoin and the blue chips. They have sold off faster and deeper and have now recovered a bit quicker and higher off the lows.

Could this be an early sign that an altcoin season is brewing?

Perhaps, but it is still a bit too early to tell. Bitcoin dominance has yet to move much and will be one of our key indicators of whether or not “altseason” is brewing.

Another key indicator is Ethereum’s (ETH) strength compared to Bitcoin over the next few weeks. If ETH recovers quicker, it could signal that altseason has begun. We’ll need to keep our eyes on the rest of the altcoin market over the course of the next few weeks to be sure.

Some signs are starting to hint that an explosive altcoin rally could be in the mix. I’ll make sure to keep you all up to date if anything changes and if altseason starts early.

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This article previously appeared on Investing Daily.