Market expert Lark Davis has recently taken to social media to assert that the much-anticipated altcoin season is far from over despite short-term corrections and challenges the broader crypto market faces. Davis believes that significant opportunities lie ahead for altcoins, particularly as their total market capitalization (excluding Bitcoin and Ethereum) hovers around $1.05 trillion. Key Factors For Impending Altcoin Season The expert points out that the current altcoin market cap is nearing its previous high of $1.13 trillion from November 2021. He recalls a similar scenario from February 2021, when the altcoin market cap tested the highs from January 2018 before breaking through. This breakout resulted in an impressive surge from $360 billion in February 2021 to $1.13 trillion by November 2021—an increase of over 200%. Davis firmly believes that once the altcoin market cap surpasses the $1.13 trillion threshold again, we could witness one of the largest altcoin seasons in the history of cryptocurrency. Related Reading: Whales Snap Up 30 Million XRP As Ripple Launches Its RLUSD Stablecoin Several key factors contribute to Davis’s optimism regarding the impending altcoin surge: Bitcoin’s Performance: Currently at all-time highs, the Bitcoin price strength often catalyzes interest in altcoins. Political Transition: With Donald Trump set to take office in just 34 days, market sentiment may shift favorably towards cryptocurrencies. Global Rate Cuts: Central banks worldwide are reducing interest rates, which typically increases liquidity in the market. Increased Capital Investment: An influx of cheap capital is making its way into the cryptocurrency space, setting the stage for potential growth. Risk-On Environment: The current market conditions are among the strongest for risk-on assets, creating an ideal backdrop for altcoin investment. Rally Anticipated As Bitcoin Dominance Rises Echoing Davis’s sentiments, crypto analyst Miles Deutscher emphasizes that the real altcoin season has yet to commence. He points to compelling historical evidence suggesting that alt-seasons are not mere coincidences but rather distinct seasonal phenomena backed by statistical patterns. Historically, Ethereum (ETH) has shown impressive returns from January to May, often outperforming Bitcoin during this period. During these months, Ethereum averages about 28% monthly returns, compared to a mere 3% for the rest of the year. Related Reading: MicroStrategy’s Bankruptcy Risk: CEO Warns Bitcoin Must Drop To $16,500 To Trigger Collapse In addition, the analyst asserts that the current environment is particularly favorable for this rotation, as Ethereum has historically outperformed Bitcoin by approximately 20% per month during alt-seasons. As Bitcoin’s performance strengthens, so too does the likelihood of capital flowing into Ethereum and other altcoins. This rotation is already observable in the recent surge in Bitcoin dominance, which has mirrored patterns seen in previous alt-seasons around 2017 and 2021. At the time of writing, ETH, the largest altcoin on the market, is trading at $3,686, down 4.4% over the 24-hour period and nearly 6% over the week. Featured image from DALL-E, chart from TradingView.com
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Ethereum Could Hit $5K as Bitcoin Profits Rotate: Justin Bennett
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, could be on the brink of a significant surge, according to crypto strategist Justin Bennett. If Ethereum clears the crucial resistance zone of $4,000 to $4,100, Bennett predicts it could skyrocket to $4,800 or even $5,000. This projection aligns with the anticipated rotation of Bitcoin (BTC) profits into ETH, potentially fueling a bullish rally. Bennett’s analysis, shared via The Daily Hodl , paints a promising picture for both Ethereum and Bitcoin as the crypto market navigates heightened investor interest and speculation. Here’s a closer look at what this could mean for crypto enthusiasts and investors. Ethereum’s Path to $5K: The $4,000 Resistance Barrier Ethereum’s ability to surpass the $4,000-$4,100 resistance zone is a pivotal factor in its journey toward the $5,000 mark. Historically, this level has served as a significant psychological and technical barrier. Breaking past it could unlock massive upward potential for ETH, bolstered by increased market confidence and trading volumes. The underlying factors contributing to Ethereum’s bullish outlook include: Ethereum 2.0 Upgrades: The transition to a proof-of-stake (PoS) mechanism is drawing positive sentiment, reducing ETH supply while boosting staking incentives. Increased Institutional Interest: As institutions diversify their crypto portfolios, Ethereum remains a top choice due to its diverse use cases in decentralized finance (DeFi) and non-fungible tokens (NFTs). Bitcoin Profit Rotation: Bennett’s prediction hinges on the assumption that profits from Bitcoin’s impressive rally will flow into Ethereum, enhancing its upward trajectory. Bitcoin’s Christmas Rally: What It Means for Ethereum Bitcoin, the flagship cryptocurrency, is also poised for a stellar performance. Bennett forecasts BTC could reach $116,000 to $125,000 during a “Christmas rally.” This anticipated surge is rooted in growing adoption, speculation, and an evolving narrative surrounding Bitcoin as a potential U.S. reserve asset under a possible second Trump administration. As Bitcoin climbs to new heights, profit-taking by investors is inevitable. According to Bennett, these profits are likely to rotate into Ethereum, a trend often observed during bullish market cycles. This phenomenon could act as a catalyst for ETH, further strengthening its case for a $5,000 valuation. Macro Factors Boosting Ethereum’s Potential Ethereum’s bullish outlook is not only tied to Bitcoin’s success but also influenced by macroeconomic and industry-specific factors: Increased Network Activity: With more users and developers leveraging Ethereum’s ecosystem for DeFi, NFTs, and smart contracts, demand for ETH continues to rise. Supply Dynamics: Ethereum’s EIP-1559 upgrade has introduced a deflationary mechanism by burning a portion of transaction fees, reducing overall supply. Global Adoption: From retail investors to enterprises, Ethereum is becoming a staple in diverse crypto portfolios, driving long-term growth prospects. The Trump Effect: Speculation Drives Crypto Momentum Bennett’s mention of Bitcoin potentially becoming a U.S. reserve asset under Trump has added an intriguing layer of speculation to the crypto narrative. While such a development remains speculative, its mere possibility has fueled market excitement. The implications for Ethereum are equally significant, as broader crypto adoption could elevate ETH’s standing as a core digital asset. What’s Next for Ethereum Investors? For investors eyeing Ethereum’s potential, the current market dynamics present an enticing opportunity: Watch the Resistance Levels: A breakout above $4,000-$4,100 could signal the start of a strong upward trend. Monitor Bitcoin’s Performance: BTC’s rally and profit-taking could directly influence ETH’s price action. Diversify and Stake: Staking Ethereum in preparation for Ethereum 2.0 offers both yield and a way to support the network’s evolution. FAQs Why is Ethereum’s $4,000 resistance significant? The $4,000-$4,100 range serves as a major technical and psychological barrier. A breakout above this level could signal strong bullish momentum for ETH. What factors are driving Ethereum’s potential rise to $5,000? Key factors include Bitcoin profit rotation, Ethereum 2.0 upgrades, institutional interest, and reduced supply due to EIP-1559. How does Bitcoin’s Christmas rally impact Ethereum? Bitcoin’s anticipated rally could lead to profit-taking, with a portion of those profits flowing into Ethereum, boosting its price. What is Justin Bennett’s prediction for Bitcoin? Bennett forecasts Bitcoin could reach $116,000 to $125,000 amid growing adoption and speculation, especially regarding its potential as a U.S. reserve asset. Is Ethereum a good investment in 2024? While market conditions are volatile, Ethereum’s strong fundamentals, diverse use cases, and network upgrades make it a promising long-term investment. What is the Trump connection to Bitcoin and Ethereum? Speculation about Bitcoin becoming a U.S. reserve asset under Trump has added momentum to the crypto market, indirectly benefiting Ethereum due to increased adoption. Conclusion Justin Bennett’s predictions for Ethereum and Bitcoin highlight the dynamic nature of the crypto market. With Ethereum poised to break resistance and potentially reach $5,000, and Bitcoin eyeing a Christmas rally to $125,000, investors have much to anticipate. Whether driven by macroeconomic trends, institutional interest, or speculative narratives, Ethereum and Bitcoin remain at the forefront of innovation and growth. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries. NewsBTC
Ripple’s New Stablecoin Launch Impacts XRP Prices
The cryptocurrency market experienced a correction after the XRP price fell significantly. Ripple`s launch of the RLUSD stablecoin played a role in this price decline. Continue Reading: Ripple’s New Stablecoin Launch Impacts XRP Prices The post Ripple’s New Stablecoin Launch Impacts XRP Prices appeared first on COINTURK NEWS . NewsBTC