Bitcoin dominance, a critical indicator in the cryptocurrency market, has recently shown significant signs for altcoin investors. Its decline signals the beginning of altseason, creating opportunities for altcoins like XRP and Ether to rally as 2024 comes to a close and 2025 begins.
This article explores Bitcoin dominance, the concept of altseason, and the potential for altcoins to attract investor interest.
What is Bitcoin Dominance and Altseason?
Bitcoin dominance measures the percentage of Bitcoin’s market capitalization compared to the total cryptocurrency market. A drop in Bitcoin dominance often signals the start of an altseason, a period where altcoins outperform Bitcoin.
Bitcoin dominance has fallen to 56.60%, breaching its two-year support line. This shift suggests that the market has officially entered altseason, where smaller cryptocurrencies gain traction and value.
The decline in Bitcoin dominance typically occurs as investors take profits from their Bitcoin positions and reallocate funds to altcoins with higher growth potential. This flow of capital from Bitcoin to other assets provides increased liquidity and demand, propelling altcoins to new highs.
BTC Price Today
As of this writing on December 2, 2024, BTC price has decreased by 0.5% to trade at $95,990 with its highest price being $98,130 in the last 24 hours. the prediction of Bitcoin price reaching $100,000 could be achieved before 2025.
However, when Bitcoin dominance continues to decline and is replaced by Altseason, the dream of BTC price of $100K will have to wait longer.
Should you buy Bitcoin now when dominance and price are decreasing? You can do more research on whether Bitcoin will really experience a correction and the prediction of Altcoin Season will really come. Check the Bitcoin price and convert the BTC price to USD so you can find out your budget in more detail.
XRP: A Top Contender in Altseason
While BTC experienced a price drop, XRP price experienced a significant increase of up to 30%. Currently, XRP is trading at $ 2.4374 with an RSI value reaching more than 86 and is considered to be at the overbought point. The MACD line has increased drastically and shows signs of bullishness coming soon.
Among the altcoins expected to benefit from this trend, XRP stands out. As the world’s sixth-largest cryptocurrency, XRP is projected to see significant gains throughout the season. Ryan Lee, Chief Analyst at Bitget Research, predicts that XRP could reach $2.57 by December 2024.
Key Drivers for XRP’s Price Surge
1. Bitcoin Halving Effect: Historically, XRP has shown significant growth approximately 228 days after a Bitcoin halving event. With the most recent halving in 2024, XRP is positioned for a strong rally as the year ends.
2. Potential XRP ETF Approval: The filing for an XRP ETF by asset manager 21Shares with the U.S. Securities and Exchange Commission (SEC) could act as a major price catalyst. If approved, this ETF would enhance institutional trust and adoption of XRP.
3. Regulatory Changes: The anticipated departure of SEC Chair Gary Gensler in January 2025 is expected to bring more crypto-friendly regulations, potentially boosting XRP and other cryptocurrencies.
Ethereum: Another Rising Star
Ethereum (ETH), another major altcoin, is also drawing significant attention. Following Donald Trump’s victory in the 2024 U.S. presidential election, demand for leveraged Ethereum exchange-traded funds (ETFs) surged by over 160%. Analysts expect Ether to surpass $4,000 ahead of Trump’s inauguration in January 2025.
The increased interest in Ether ETFs signals strong institutional confidence in its long-term potential. Market optimism surrounding Trump’s inauguration and potential policy shifts could bolster investor risk appetite, benefiting Ether and other altcoins.
Currently, price of ETH is $3,658 with a decrease of 1.28%. Reaching the price of $4,000 does look quite difficult because the price of ETH often follows the price of BTC. However, the RSI value and MACD line are still above average, ETH’s optimism towards the resistance price remains high.
Key Milestones in January 2025
The first month of 2025 is expected to be pivotal for the cryptocurrency market due to several significant events:
1. Trump’s Presidential Inauguration: Likely to boost market confidence and risk-on sentiment.
2. SEC Chair Gensler’s Resignation: This could accelerate the approval of crypto-based ETFs and foster a more favorable regulatory environment.
3. Post-Bitcoin Halving Effects: Historically, Bitcoin halvings have a delayed impact, creating ripple effects for altcoins like XRP and Ether.
Conclusion
The decline in Bitcoin dominance marks the beginning of altseason, offering substantial growth potential for altcoins like XRP and Ether. With XRP expected to reach $2.57 by December 2024 and Ether potentially crossing $4,000 by early 2025, the coming months could be highly rewarding for cryptocurrency investors.
However, as with any investment, the cryptocurrency market remains highly volatile. Investors should conduct thorough research and implement risk management strategies to navigate the complexities of this evolving space.
This press release has also been published on VRITIMES