Bitcoin continues its significant price rise after incoming US President Donald Trump made some cryptocurrency-friendly choices for his incoming government.
Bitcoin exceeds $100,000
Hours after announcing he would likely nominate Paul Atkins for the SEC position as current Chairman Gary Gensler steps down on Inauguration Day, Bitcoin has taken another step, finally… Breaking the $100k mark. This excitement around the world’s top cryptocurrencies has extended to altcoins.
Bitcoin breaking the $100k barrier today. Source: Coingecko
According to Google Trends, Interest in “altcoins” has surged. Significantly on November 30, it hit 100, fueled by post-election frenzy and the hiring of crypto-friendly figures. On December 4th, it reached 88 out of 100, matching the enthusiasm of the 2021 altcoin season.
Searches for altcoins started to rise in November
Interest in altcoins and Bitcoin began to grow in November in anticipation of a second Trump administration. The public’s excitement is reflected in Google Trends, where searches for altcoins reached 93 in November before falling to 56 in the second week.
Searches for "altcoins" up from Nov 4 to Dec 4. Source: Google Trends
The increased search volume has traditionally been attributed to the participation of retail investors, which is the main driver of price increases in the industry. Today’s interest in altcoins is comparable to the 2016/2017 bull cycle. Market observers say that the popular altcoin interest cycle occurs when the price of Bitcoin is stable or new highs are being tested.
Aside from the spike in interest, some altcoins have posted significant gains. For example, the prices of XLM and XRP quadrupled last December, but are still below their all-time highs. On the other hand, Tron (TRX) and Binance Coin (BNB) reached new highs, indicating increased market interest.
Favorable Altcoin Season Indicators
Market analysts and commentators are now interested in trends and other indicators to measure market sentiment. Jamie Coates, Senior Cryptocurrency Analyst at Real Vision, shared that Bitcoin’s recent price performance is not the only best indicator of a potential rise in altcoins.
Coates added that the number of tokens in circulation provides a better understanding of the altcoin market. The Real Vision analyst also relies on the Altseason indicator, whose current result is 67% and suggests a consolidation phase for altcoins.
Guys, Altseason is not defined by #Bitcoin Dominance Chart – It’s all about market breadth, such as how many assets are outperforming $ Bitcoin.
In my view, when my Altseason indicator crosses above 50% and the market is trending higher, that is Altseason. Now the indicator… pic.twitter.com/ZsFGHTjpFK
– Jamie Coutts CMT (@Jamie1Coutts) December 2, 2024
CryptoQuant CEO sees trading volume rise
Meanwhile, Ki Young Joo of CryptoQuant also shared his thoughts on the recent price action, saying that the asset transfer from Bitcoin to altcoins is no longer the main driver of the market. Instead, he pointed to the increase in trading volume of stablecoins and their market pairs as the real drivers.
Young argued that the increase in stablecoin trading volume explains the current movement of altcoins. If there is an increase in altcoin trading volume, it also means that use cases are expanding.
Featured image from NullTX, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.