Bitcoin just blasted past $100,000! This surge, fueled by some pro-crypto appointments in the new administration, has sent ripples throughout the crypto world, especially for altcoins.
Altcoin Interest Explodes
Google searches for “altcoins” went absolutely bonkers at the end of November, hitting a record high. This mirrored the excitement surrounding the 2021 altcoin season. The buzz started building in November, likely driven by anticipation of the new administration’s policies. This surge in searches usually means retail investors are jumping in – a key factor in past price rallies. The current level of interest is reminiscent of the 2016/17 bull market. Interestingly, this kind of altcoin hype often happens when Bitcoin’s price is stable or hitting new highs.
Altcoin Prices Soar (Some More Than Others)
Several altcoins have seen impressive gains. XLM and XRP, for example, have quadrupled in value this December (though they’re still below their all-time highs). Others, like Tron (TRX) and Binance Coin (BNB), have even hit new all-time highs.
Experts Weigh In: Is This Real Altseason?
Experts are carefully analyzing various market indicators to figure out what’s really going on. Jamie Coutts, a crypto analyst, points out that Bitcoin’s price isn’t the only thing to watch. He suggests that the number of actively traded tokens is a better gauge of the altcoin market’s health. Coutts also uses his own “Altseason Indicator,” which currently sits at 67%, suggesting a period of consolidation for altcoins. He emphasizes that altseason isn’t just about Bitcoin’s dominance; it’s about the overall breadth of the market – how many altcoins are outperforming Bitcoin.
Ki Young Ju, CEO of CryptoQuant, has a different perspective. He believes that the increased trading volume of stablecoins and their pairings, rather than the transfer of assets from Bitcoin to altcoins, is the real driver of the current altcoin activity. He argues that rising altcoin trading volume points to expanding use cases for these cryptocurrencies.
