Analysts are forecasting a strong rally for Ether and altcoins like XRP as Bitcoin’s dominance shows signs of waning. This shift could fuel gains leading up to Jan. 20, coinciding with Donald Trump’s inauguration and the end of SEC Chair Gary Gensler’s term.
Bitcoin Dominance Signals Altcoin Season
Bitcoin’s share of the total crypto market value, known as Bitcoin dominance, has dropped to 56.1%. This marks a break below its two-year support level, a move often associated with the start of “altseason.”
Altseason, short for altcoin season, refers to periods when cryptocurrencies other than Bitcoin experience significant price surges. Popular analyst Mikybull Crypto highlighted this trend in a Nov. 30 post, stating that the market is now officially in an altseason phase.
Investor Interest Shifts to Altcoins
The decline in Bitcoin dominance suggests that investors are taking profits from their Bitcoin holdings and reallocating funds into altcoins. Ether (ETH) and other smaller cryptocurrencies like XRP are already seeing increased attention.
Demand for leveraged Ether ETFs has surged by more than 160% since Trump’s presidential victory on Nov. 5. Analysts now expect Ether to surpass $4,000, while XRP and other altcoins could follow with their own rallies into 2025.
Summary Review: Bitcoin’s declining dominance is paving the way for an altcoin season, with Ether and XRP poised for strong rallies. Analysts predict investor profits from Bitcoin will flow into smaller cryptocurrencies, driving growth in the months leading up to 2025. Key events like Trump’s inauguration and changes in regulatory leadership could further amplify market activity.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
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