Altcoins have lagged Bitcoin throughout the year, weakened by ongoing regulatory uncertainty, according to a report by K33 Research, which noted that the upcoming U.S. election results have increased the importance of smaller cryptocurrencies compared to Bitcoin.
âBitcoinâs characteristics and widespread availability allow it to thrive in the medium term, regardless of the US election result,â said K33 Research analysts Vetle Lunde and David Zimmerman. âFor altcoins, the election is a more sensitive issue.â The path forward for altcoins will likely depend more on the election results than on Bitcoinâs path, the analysts explained.
While Bitcoinâs dominance has increased in recent months, Coinbaseâs head of research David Duong believes the election could be a turning point for altcoins to catch up. âI expect Bitcoinâs dominance to start plateauing here because altcoin names will probably come to the forefront more because of the election and people will be more interested in them,â Duong said in an interview.
He noted that the elections could act as a catalyst for crypto prices, but broader macroeconomic conditions will also play a major role in the marketâs progress. âI would actually say Iâm pretty bullish on probably the first half of Q1 2025, partly because weâre in a very strong macro environment, which I think is very positive,â Duong said. He expressed his belief that regardless of who wins, the cryptocurrency market as a whole will benefit from the elections.
*This is not investment advice.
