Bitcoin's dominance sends an important signal for altcoin investors, with the smaller cryptocurrency likely to rally during December and attract more investment heading into January 20th.
Bitcoin (BTC) dominance, which measures Bitcoin as a percentage of the total crypto market, has fallen to 56.1%, below its two-year support line, indicating the market is “officially entering alt season.” wrote popular analyst Mickey Bull. Cryptocurrency, X on November 30th post.
In crypto slang, altseason, short for altcoin season, refers to the collective rise in cryptocurrencies other than BTC that tend to benefit from Bitcoin's declining dominance.
The declining dominance of Bitcoin suggests that investors are profiting from their BTC positions and investing some of their funds in altcoins.
Virtual currency market trends. sauce: Recto Capital
Cryptocurrency investors' interest has already spread to smaller assets such as Ether (ETH). Since President-elect Donald Trump won the 2024 presidential election on November 5, demand for leveraged ether exchange-traded funds has increased by more than 160%, with ether expected to rise above $4,000. Analysts' forecasts have been strengthened.
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Analysts focus on XRP price of $2.57 in December
XRP (XRP) coin, the world's sixth-largest cryptocurrency, could benefit from Bitcoin's declining dominance.
Based on the current market structure, XRP price could rise to as much as $2.57 by the end of 2024, according to Bitget Research chief analyst Ryan Lee.
An analyst told Cointelegraph:
“We expect that XRP could reach around $2.57 during the period.” [December 2024]. In particular, XRP price trends may be affected by the Bitcoin halving event. Historically, XRP has shown significant growth approximately 228 days after a Bitcoin halving. ”
Further development of the potential XRP ETF will be a major price appreciation factor for the coin, Lee added.
Asset management firm 21Shares became the third company seeking an XRP ETF and the latest to file for an XRP ETF with the U.S. Securities and Exchange Commission (SEC) on November 1.
Related: Bitcoin could attract $2 trillion from $20 trillion new money supply in 2025
SEC Chairman Gensler’s resignation accelerates crypto rally towards 2025
XRP and other altcoins could also benefit from fundamental price catalysts heading into the first month of 2025.
One of the major triggers is SEC Chairman Gary Gensler's resignation as head of the securities regulator on January 20th. This could signal acceptance of more crypto-based ETFs and favorable crypto regulations.
Trump's presidential inauguration will also take place on January 20th, and investors' risk appetite is expected to increase. Some analysts predict that Ether will rise to more than $4,000 by the time President Trump takes office.
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