- Bitcoin hit an all-time high last week.
- But it’s just the beginning for the crypto rally, analysts say.
- They expect altcoins to pump next for several reasons.
Bitcoin hitting $100,000 was an early crypto Christmas gift that is paving the way for a crypto boom, according to analysts.
That milestone, says Coinstash co-founder Mena Theodorou, is “fuelling hopes among traders for a sustained altcoin season and a potential Santa Rally,” he said in an email.
He’s not the only bullish market watcher. Analysts point to three reasons why an altcoin pump is just around the corner.
Donald Trump
Several drivers that fuelled Bitcoin’s surge have also pumped altcoins.
Donald Trump’s election victory is chief among them. Since November 5, the overall altcoin market has surged over 90% to be worth almost $1.9 trillion.
Why? Because the industry expects him to deliver on the deluge of pro-crypto promises he made during the campaign trail — and they seem to get things on their wish list ticked off just in time for the holidays.
Last week, Trump nominated Paul Atkins to replace Gary Gensler, the hard-charging chair of the Securities and Exchange Commission who spearheaded the agency’s crypto crackdown.
With Gensler gone, pundits expect the agency to drop cases against industry players — for instance against XRP developer Ripple — which have hampered growth.
Institutional adoption
Wall Street has piled into crypto in a big way in 2024 — and that’s another factor why analysts say altcoin season is about to kick off.
Their expectation is that the likes of Ethereum, Solana and XRP will be able to replicate the success of the spot Bitcoin exchange-traded funds that launched in January.
The SEC has so far only approved Ethereum spot ETFs, but issuers like Bitwise Asset Management and 21Shares have submitted fillings to the SEC to launch Solana and XRP ETFs.
With Trump in office, market watchers say launching more crypto ETFs will be easier.
Bitcoin’s falling dominance
Bitcoin’s the biggest cryptocurrency by far, but its share of the $3.6 trillion market has dropped to just under 54%.
That suggests that traders are shifting their attention and money towards smaller cryptocurrencies, Theodorou said.
Crypto market movers
- Bitcoin is down 1.2% over the past 24 hours to trade at $98,031.
- Ethereum is down 4.6% to trade at $3,718.
What we’re reading
- Even crypto critics like Trump’s pick to head the SEC — DL News
- Mania Phase, initiated! — Milk Road
- Bitcoin May Have Dipped to $97,000, but Still Sees Bullish Signs — Unchained
- What you missed this week — Milk Road
- Ripple CEO rips former SEC official in ‘60 Minutes’ XRP debut — DL News
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
