Ethereum has experienced a remarkable boost this week, surging by 20% to reach $3,400, its highest point in five months. This significant rise suggests a shift in investment from Bitcoin towards major Layer-1 projects. Other altcoins, namely XRP and Solana, also saw a 5% increase, with Cardano, Polkadot, and Chainlink gaining momentum. The anticipation of legislative changes like the Genius Act and Clarity Act, along with a possible prohibition on a U.S. central bank digital currency, has fostered optimism for the crypto market’s progress in the coming months.
How Are Altcoins Stepping Up?
For the first time in over a year, CryptoQuant’s MVRV indicator shows steady momentum in the altcoin market. In this scenario, altcoins such as SUI and SEI have posted substantial weekly gains of 36% and 41%, with Ethereum itself rising by 23.3%. Some market watchers have highlighted Bitcoin’s consistent trading above $112,000 as a primary factor behind this altcoin performance, though sudden Bitcoin fluctuations could alter liquidity dynamics.
Could Political Decisions Boost Crypto Markets?
The U.S. Congress is reviewing three crucial bills intended to decrease regulatory uncertainty, thereby attracting institutional interest in digital assets. The Genius Act, already approved by the Senate, outlines stablecoin regulations, while the Clarity Act will assist in defining cryptocurrencies. Additionally, proposed legislation to block a central bank-backed digital currency could enhance Bitcoin’s position as “digital gold.”
Technical analyst Katie Stockton anticipates Bitcoin reaching $135,000 by the third quarter if it surpasses the $108,300 mark. Ray Wang from Constellation Research envisions Bitcoin hitting $150,000 within six months, supported by declining interest rates and sovereign fund investments. Bitwise CEO Hunter Horsley sees a potential year-end target of $200,000, citing the rising number of publicly traded firms holding BTC, expected to grow with clearer regulations.
The increase in trading volume indicates capital flow into both high-cap and medium-cap altcoins, driven by increased on-chain activities. Cardano’s on-chain data demonstrates its recovery through higher address activity, while Polkadot and Chainlink encounter increased demand due to institutional interest.
This week marks significant achievements for the altcoin community:
– Ethereum’s price reached $3,400, climbing 20%.
– SUI and SEI saw weekly gains of 36% and 41%, respectively.
– XRP and Solana both increased by 5%.
As altcoins continue to gain traction, the overall market shows signs of moving past crucial milestones. Ethereum’s performance could act as an early indicator of a broader market recovery in the months ahead. Eyeing these trends, market participants remain on the lookout for further regulatory clarity, which could propel digital currencies to new heights.
