December 03, 2024
By Our Correspondent
Recent trends in Bitcoin dominance have provided a noteworthy signal for altcoin investors, suggesting that smaller cryptocurrencies may experience a rally in December, attracting increased investment prior to January 20. Currently, Bitcoin’s dominance, which reflects its market share relative to the total cryptocurrency market, has decreased to 56.1%, dipping below its two-year support level. This decline has led analysts, including the well-known Mikybull Crypto, to declare that the market is “officially in altseason,” as noted in a post on November 30. In cryptocurrency terminology, “altseason” refers to a period when altcoins, or cryptocurrencies other than Bitcoin, collectively rise in value, often as a result of Bitcoin’s diminishing dominance.
This trend indicates that investors are reallocating profits from Bitcoin into altcoins. Interest in smaller assets, such as Ether, has already been observed. The demand for leveraged Ether exchange-traded funds (ETFs) surged by over 160% following the election of President-elect Donald Trump on November 5, which has led analysts to anticipate an Ether price increase above $4,000. Analysts are projecting a potential price of $2.57 for XRP in December.
As the sixth-largest cryptocurrency, XRP stands to gain from the ongoing decline in Bitcoin dominance. Ryan Lee, chief analyst at Bitget Research, suggests that XRP could reach approximately $2.57 by the end of 2024, based on the current market dynamics. He noted, “XRP’s price movements may be significantly influenced by Bitcoin’s halving event, as historical data shows that XRP tends to experience substantial growth around 228 days post-halving.” Additionally, advancements regarding a potential XRP ETF could serve as a significant price driver for the cryptocurrency, with asset manager 21Shares recently filing for an XRP ETF with the US Securities and Exchange Commission (SEC) on November 1, marking the third such application.
The resignation of SEC Chair Gary Gensler is expected to stimulate a rally in the cryptocurrency market extending into 2025. XRP and various altcoins may experience positive price movements due to significant fundamental factors as the new year approaches. A key event is set for January 20, when Gensler will vacate his position at the helm of the securities regulator, potentially paving the way for the approval of additional crypto-based ETFs and more favorable regulations for cryptocurrencies. Additionally, the anticipated presidential inauguration of Donald Trump on the same day is likely to enhance investor confidence and risk tolerance. Some analysts have forecasted that Ether could surge past $4,000 in the lead-up to Trump’s inauguration.
