Today’s Bitcoin (BTC) trading saw its price surge to $68,800, closely approaching its historic peak. This rise is backed by a considerable influx of investments into spot Bitcoin ETFs initiated in the US earlier this year. Concurrently, market experts are considering the likelihood of a shift in investment from Bitcoin to alternative cryptocurrencies (altcoins), potentially triggering a new cycle of altcoin growth.
Altcoin Market Swells as Investors Eye Potential Gains
The past month witnessed a 50% increase in the altcoin market’s value, now estimated at $1.2 trillion, with memecoins delivering substantial returns. Yet, despite these gains, key altcoins like Ethereum (ETH), Cardano (ADA), and Polygon (MATIC) have not fully participated in the rally.
A prominent market analyst, CrediBuLL Crypto, has shared insights on the anticipated altcoin season, suggesting that altcoins might see a performance surge once Bitcoin breaches its previous high of $69,000. He presents two historical-based outcomes: one where Bitcoin’s value doubles following the breach before altcoins climb, and another where altcoins start their ascent as soon as Bitcoin hits or consolidates at its peak.
A Bullish Outlook for Ethereum and Altcoins in 2024
Matthew Seigel from VanEck’s Digital Assets team projects a prosperous year for Ethereum and other altcoins. He cites Ethereum’s year-to-date performance, which has surpassed Bitcoin’s, with a 56% increase compared to Bitcoin’s 50%. Seigel anticipates that Ethereum will continue to outperform Bitcoin, particularly during the year of Bitcoin’s block reward halving.
Additionally, Seigel acknowledges the significant capital flowing into Bitcoin ETFs and suggests that while regulatory landscapes may evolve, crypto should be considered a global asset class and a hedge against the US dollar, rather than a US-centric investment.