Bitcoin dominance has printed a significant signal for altcoin investors, that could see smaller cryptocurrencies rally during December and attract more investments ahead of Jan. 20.
Bitcoin (BTC) dominance, which measures the ratio of Bitcoin to the total value of the crypto market, has fallen to 56.1%, below its two-year support line, signaling that the market is “officially in altseason,” wrote popular analyst Mikybull Crypto, in a Nov. 30 X post.
In crypto slang, altseason, short for altcoin season, refers to the collective rally of cryptocurrencies besides BTC, which tend to benefit from Bitcoin’s declining dominance.
Declining Bitcoin dominance suggests that investor are taking profit from their BTC positions and investing part of these funds into altcoins.
Crypto market flow. Source: Rekt Capital
Crypto investor interest has already spread to smaller assets, such as Ether (ETH). Demand for leveraged Ether exchange-traded funds (ETFs) rose by over 160% since President-elect Donald Trump won the 2024 presidential election on Nov. 5 — bolstering analysts expectations of an Ether rally above $4,000.
Related: Bitcoin was pronounced dead 415 times, now it battles for $100K
Analysts eye $2.57 XRP price in December
The XRP (XRP) coin, the world’s sixth-largest cryptocurrency, could stand to benefit from the falling Bitcoin dominance.
Based on the current market structure, XRP price could rally up to $2.57 before the end of 2024, according to Ryan Lee, chief analyst at Bitget Research.
The analyst told Cointelegraph:
“It is anticipated that XRP could reach approximately $2.57 during [December 2024]. Notably, XRP’s price trends may be influenced by Bitcoin’s halving event. Historically, XRP has shown significant growth around 228 days after a Bitcoin halving.”
Further progress on the potential XRP ETF would be a major price catalyst for the coin, added Lee.
Asset manager 21Shares was the latest to file for an XRP ETF with the US Securities and Exchange Commission (SEC) on Nov. 1, as the third company to seek an XRP ETF.
Related: Bitcoin may attract $2T from new $20T money supply in 2025
SEC Chair Gensler’s departure to fuel crypto rally into 2025
XRP and other altcoins may also benefit from fundamental price catalysts leading into the first month of 2025.
One of the major catalysts comes on Jan. 20, when SEC Chair Gary Gensler will step down from leading the securities regulator — which could signal the acceptance of more crypto-based ETFs and favorable cryptocurrency regulations.
Trump’s presidential inauguration, also on Jan. 20, is anticipated to boost investor risk appetite. Some analysts predicted an Ether rally above $4,000 leading up to Trump’s inauguration.
Magazine: 5 incredible use cases for Based Agents and Near’s AI Assistant
Comments (No)