As a seasoned crypto investor with a knack for spotting trends and patterns, I find the recent drop in Bitcoin dominance to be an exciting development. Having navigated through several bull and bear markets, I can confidently say that this shift signals an “altseason” – a rally of smaller cryptocurrencies, including my favorites like Ethereum, XRP, and many others.
For those who invest in altcoins, the dominance of Bitcoin has signaled a potentially strong movement for smaller cryptocurrencies in December, possibly leading to an increase in investments before January 20th.
According to well-known cryptocurrency analyst Mikybull Crypto, in a recent blog post on November 30th, the dominance of Bitcoin (BTC), representing its proportion compared to the entire crypto market’s worth, has dropped below a two-year support level to 56.1%. This decrease suggests that we are currently experiencing an “altseason,” where alternative cryptocurrencies are expected to gain more attention and potentially increase in value.
In simple terms, “altseason,” a term often used in the world of cryptocurrency, is when smaller digital currencies other than Bitcoin experience a surge or rally. This usually happens when Bitcoin’s influence wanes, allowing these alternative coins to gain more attention and value.
The decrease in Bitcoin’s dominance indicates that investors are likely cashing out some of their Bitcoin earnings and allocating those funds towards other cryptocurrencies, such as altcoins.
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.
Analysts eye $2.57 XRP price in December
It’s possible that the XRP coin, currently ranked as the sixth largest cryptocurrency globally, might experience some positive effects due to the decline in Bitcoin‘s influence over the market.
According to predictions from Ryan Lee, the chief analyst at Bitget Research, given the existing market setup, the value of XRP might increase to reach approximately $2.57 by the year 2024.
The analyst told CryptoMoon:
“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.
21Shares recently submitted an application for an XRP-based Exchange Traded Fund (ETF) to the United States Securities and Exchange Commission (SEC), marking them as the third company pursuing such a fund.
SEC Chair Gensler’s departure to fuel crypto rally into 2025
In simple terms, it’s possible that XRP and other alternative cryptocurrencies could see a positive impact due to underlying price drivers as we approach the start of the year 2025.
On January 20th, one significant event takes place as the current chair of the Securities and Exchange Commission (SEC), Gary Gensler, is expected to resign from his position. This move could indicate a shift in policy towards accepting more exchange-traded funds (ETFs) based on cryptocurrencies and implementing crypto-friendly regulations.
The upcoming inauguration of President Trump on January 20th is expected to stimulate investors’ risk-taking sentiment. Certain analysts forecasted a surge in the value of Ether, potentially reaching $4,000 or higher, prior to Trump’s inauguration.
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2024-11-30 13:32