Cryptocurrency specialists from Bitfinex suggest a potential altcoin season, energized by Ethereum‘s price spike. Their report compiles indicators for a solid forthcoming shift in market trends. Ethereum’s revival has steered investor attention away from Bitcoin, creating a buzz in the alternative coin space. Ethereum’s value soared to a peak not seen in almost two years, maintaining above $3,000 despite minor setbacks. Factors including the anticipated U.S. approval of an Ethereum ETF and imminent network enhancements contribute to its rise.
Ethereum’s Momentum Sparks Altcoin Enthusiasm
The Bitfinex Alpha report points to Ethereum’s recent ascent, which ended a streak of underperforming against Bitcoin. On-chain data reveal significant Ethereum withdrawals from exchanges, over 800,000 ETH, worth approximately $2.4 billion since the start of the year, hinting at a supply squeeze. This trend could drive Ethereum’s price further up, setting the stage for an altcoin boom.
Bitcoin Dominance and Altcoin Opportunities
Bitcoin’s dominance spiked to 55% in December and has since stayed above the 50% mark. Such patterns in Bitcoin’s dominance often signal a swing of interest towards altcoins. Bitfinex analysts recall the aftermath of Bitcoin’s long-standing rally leading to altcoin success. With Bitcoin’s current dominance wavering around 51%, a dip below 50% could incite an extended altcoin rally.