Bitcoin Surges, Altcoins Follow: Is The Alt Season Starting?

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By A D

As Bitcoin recently scaled an 18-month peak, experiencing an extraordinary 40% surge over just five weeks, the crypto realm is abuzz with excitement. Bitcoin’s journey, fluctuating $35,000-$37,000, extends beyond chart patterns, involving a complex interplay of intricate market dynamics and sentiment shifts.

The critical question now echoing in the crypto community is whether the Alt Season is on the horizon.

BTC’s climb to an 18-month peak triggered an astounding $50 million in short liquidations within a mere four hours. Bitcoin’s 120% YTD gain triggered a 16% surge in the top 100 digital assets, shaping the broader market movement.

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Read: Deciphering 4-Year Cycle Of Bitcoin: What’s Next?

As Bitcoin’s climb momentarily pauses, bears attempting to push it into a deeper correction find themselves thwarted by resilient bulls. In the altcoin space, FTT, JasmyCoin (JASMY), and Celestia (TIA) celebrate noteworthy gains, driven by positive news and market dynamics.

The Altcoin Scenario

Bitcoin’s dominance at 51.07%, while slightly down, hints at a historical trend—investors shift focus to altcoins after substantial Bitcoin rallies.

A key altcoin season indicator emerges from the outperformance of 75% of the top 50 coins compared to Bitcoin over the last 90 days. Stablecoins and asset-backed tokens are notable exceptions, signaling a shift in investor sentiment towards altcoins, which are gaining appeal for potential returns.

Delving into the performance metrics of the top 13 altcoins by market cap (excluding stablecoins), a narrative of double-digit gains within the last 30 to 60 days unfolds. Ripple’s XRP, Solana’s SOL, Chainlink’s LINK, Binance Coin (BNB), Cardano’s ADA, Tron’s TRX, and Polygon’s MATIC emerge as notable performers, adding depth to the burgeoning altcoin narrative.

Zooming out to the broader market perspective, the global crypto market cap, standing at $1.41 trillion, recently achieved a 14-month high. Accompanying this, the total market volume surged by 25.39% to $61.12 billion. In this landscape, decentralized finance (DeFi) contributes $6.43 billion, comprising 10.52% of the total crypto market volume, while stablecoins command a significant $53.66 billion, representing 87.80% of the 24-hour volume.

Despite the positive momentum, there’s a subtle hint of caution in the air as some major altcoins experience a pullback, indicating a potential correction. This observation aligns with the Crypto Fear & Greed Index, which transitioned from fear to greed since October 23, mirroring an overall positive market sentiment.

Latest Updates In The Crypto Space

Robinhood’s European Expansion

Robinhood, the popular trading platform, is set to broaden its cryptocurrency trading services to the European Union (EU) and commence brokerage operations in the United Kingdom (UK). The expansion comes on the heels of Robinhood’s third-quarter results, revealing a 29% year-on-year increase in total net revenue, amounting to $467 million. However, the report also highlighted a notable 11% decline in transaction-based revenue, attributed to a 55% drop in crypto revenues to $23 million. This dip is linked to lower crypto trading volumes

This expansion is timely, especially amid the suspension of services to U.K. customers by certain crypto firms due to new promotion rules. These rules mandate clear risk labels and system changes, effective since October 8.

Binance’s Web3 Wallet

Binance, a leading cryptocurrency exchange, has made a strategic move into the Web3 space by launching its own Web3 wallet. This announcement, made during the Binance Blockchain Week conference in Istanbul, positions Binance to enter the decentralized finance (DeFi) ecosystem in full force. The newly released Web3 wallet is designed to function seamlessly across 30 different blockchain networks.

This foray into Web3 puts Binance in direct competition with established players like MetaMask and Trust Wallet. Interestingly, Binance had acquired Trust Wallet in 2018, and recent developments include listing a futures market for TrustWallet’s native token (TWT). The dynamic in the market became evident as the TWT price experienced a 7% drop within 24 hours after the announcement.

Binance’s Web3 wallet not only offers self-custody capabilities, putting users in complete control of their wallets, but it also integrates curated decentralized applications (dapps) and introduces an “Airdrop Zone” for exclusive airdrops. Additionally, users gain direct access to staking, lending, and various other financial instruments.

ETF Landscape Looking to Expand Beyond Bitcoin

BlackRock has officially unveiled its plans for a spot Ethereum exchange-traded fund (ETF), as revealed in a filing with the SEC for the “iShares Ethereum Trust.” While speculation looms over the SEC’s approval of a spot Bitcoin ETF, analysts are exercising caution, estimating a potential green light by January at the earliest. The SEC’s deliberate approach is evident, with recent extensions of the timeline for applications, including the ARK 21Shares Bitcoin ETF set for a decision on January 10.

All the ETF buzz catapulted Bitcoin to $37,900, marking its highest point in 18 months. Ethereum saw a remarkable 10% surge to levels approaching $2,100. The broader crypto market felt the impact as well, with select altcoins enjoying 4-5% gains in the wake of this ETF-centric enthusiasm.

Read: Bitcoin ETF: All You Need To Know!

Ripple’s XRP and Global Expansion

In a strategic move to advance its global presence, Ripple has joined forces with Onafriq to establish payment corridors spanning 27 African countries. This collaboration leverages blockchain technology to streamline remittances and payments, offering citizens across the continent an efficient and cost-effective financial solution. Ripple, in partnership with three other companies, is set to facilitate low-cost, high-speed transactions through Onafriq’s extensive pan-African network.

Furthermore, Ripple’s XRP has received approval from the Dubai Financial Services Authority, marking a significant milestone in the cryptocurrency’s journey. This regulatory green light opens the door to potential expansion into 72 countries across the Middle East, Africa, and South Asia (MEASA).

Read: XRP Price Surge: Legal Wins And Beyond

Elon Musk’s AI and Scam Tokens

In a sudden turn of events, the GROK token, inspired by Elon Musk’s Grok AI, faced a severe setback, shedding 50% of its value within 24 hours. A promising venture with a $150 million market cap and 13,000 holders unraveled as its developer’s ties to failed projects surfaced.

Despite initial success, the GROK token’s rapid rise proved short-lived as scrutiny intensified. Notably, it is crucial to differentiate between GROK token and Musk’s Grok AI, a chatbot service currently in beta testing.

Fake News Impact on Market

False reports of BlackRock filing for an XRP-spot ETF briefly sent XRP to the $0.75 handle. The aftermath reverberated through the altcoin landscape. SOL grappled with an 8% loss, joined by LINK and AVAX plunging over 10% and 13%, respectively. ADA, DOT, and DOGE followed suit, witnessing 5%-7% dips.

Furthermore, SEC v Ripple case has extended beyond April 2024, with charges dropped against co-founders Chris Larsen and Brad Garlinghouse.

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