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Altcoins on Fire Due to Bitcoin Big Move to $44,000

Bitcoin's dominance is on a continuous ascent, solidifying its position as the leading cryptocurrency and steadily progressing toward elevated levels.

Altcoins are on Fire

As reported on X by Kaiko on December 6, the volume of altcoins in the market reached 67% last week, while Bitcoin and Ethereum accounted for 28% and 11%, respectively. This data, coming from a prominent cryptocurrency market data source, suggests a change in investor sentiment and an increasing interest in altcoins.

These forecasts have materialized, with various altcoins achieving their highest valuations since November 2022. Notably, Luna Classic (LUNC) and other coins such as Energi and Blur have experienced remarkable growth in the past week.

On Wednesday, within the altcoin market's top 200 tokens, an equal distribution was observed between winners and losers. Recent gainers underwent a period of consolidation, while several underperformers recorded double-digit gains.

The cryptocurrency market is undergoing a substantial upswing, propelled by Bitcoin's surge to $44,000, pushing the total market capitalization beyond $1.5 trillion for the first time since May 2022.

This bullish momentum, driven by panic buying, dovish statements from Federal Reserve officials, and a depreciating dollar, has laid the groundwork for a potential altcoin season. Noteworthy contenders in this evolving scenario include Injective (INJ), Optimism (OP), Aptos (APT), LeverFi (LEVER), Render (RNDR), and ScapesMania, each presenting distinct propositions that have captured the attention of investors.

Moreover, according to crypto investor Brian Kelly, numerous altcoins may experience a surge next month, following the substantial rally of Bitcoin (BTC). In a recent interview on CNBC's Fast Money, the founder and CEO of digital asset investment firm BKCM expressed his anticipation for some altcoins to commence a rally in January, citing a historical price pattern.

“Generally what we’ve seen in bull markets is about a month after Bitcoin moves, it starts to go to the altcoins. So we saw Ethereum breakout [Sunday] night and then Solana and then it starts to go down the list and so that’s what I would anticipate. Let’s call it January or so.” Brean Kelly said.

Lastly, he predicts that Bitcoin will follow a historic price pattern and go on a massive rally after April 2024, the date of the next halving event, when miners’ rewards are cut in half.

"In historical terms, the 12 to 16 months post-halving have consistently marked the period of peak Bitcoin performance. This is the focal point of current considerations. However, there's a potential difference this time due to the elevated Bitcoin price. Presently, only around 900 Bitcoin are mined daily, and this is set to halve. While the absolute quantity may not be substantial, the impact is a Bitcoin market that is now scarcer than gold. This marks a historic moment where, for the first time, we have an asset that surpasses gold in terms of scarcity."


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