Cryptocurrencies have experienced a notable surge following a significant rise in Bitcoin (BTC) prices, with three leading altcoins among the top 50 showing remarkable gains. Just days ago, investors were anxious about BTC potentially dropping below $50,000. Contrary to these fears, BTC has climbed above $62,000, sparking renewed interest in the crypto market. The spotlight now turns to which altcoins could offer investors profitable returns.
What is an Altcoin Bull Market?
An altcoin bull market, also known as “altcoin season,” occurs when at least 75% of non-Bitcoin assets outperform BTC. Although this period hasn’t officially started, Glassnode founders Jan Happel, Rafael Schultze-Kraft, and Yann Allemann suggest that the rise in Solana (SOL), Ethereum (ETH), and Ripple (XRP) indicates growing market optimism, hinting at the potential for an imminent altcoin bull run.
On July 12, they noted a similarity to November 2020 when the IWM index rose, signaling the start of a major altcoin rally that saw Total3 increase by 400% over four months. They speculate whether the current market environment could trigger a similar altcoin surge.
How Are Solana, ETH, and XRP Performing?
In the past week, Solana’s price has jumped by 9.31%, Ethereum by 9.56%, and Ripple by over 20%. XRP experienced a 40% gain around the summary judgment anniversary on July 13, 2023, although it couldn’t sustain all the gains, it remains close to $0.53. Additionally, there is speculation that the SEC might announce the listing of an ETH ETF soon, which could further boost market sentiment.
Experts foresee significant net inflows, akin to those seen with BTC, if the ETH ETF gets listed. This development could potentially ignite an altcoin season, although there’s a possibility it could also turn out to be a bull trap.
User-Usable Inferences
Key Takeaways:
- Solana, Ethereum, and Ripple are currently leading the altcoin surge.
- Markets are anticipating the possible announcement of an ETH ETF listing by the SEC.
- Investors should watch for market signals similar to the 2020 altcoin rally.
- There’s potential for significant gains, but caution is advised due to the risk of bull traps.
Overall, the crypto market shows signs of robust activity, with several altcoins benefiting from BTC’s upward momentum. Investors should keep an eye on market trends and regulatory announcements that could influence future performance.