BTC remained relatively stable, with large-cap altcoins registering gains of 5% to 10% in a widening crypto upswing. The diminishing market dominance of Bitcoin serves as an indication of investors adopting a more risk-tolerant approach to the market, according to an analyst’s assessment.
Furthermore, ByteTree analysts have hinted at the emergence of preliminary indicators suggestive of a potential altcoin season. Consequently, they are increasingly favoring altcoins over BTC within their portfolio allocations.
Alternative cryptocurrencies, often referred to as altcoins, displayed notable gains ranging from 5% to 10% on Monday. Meanwhile, Bitcoin (BTC) maintained a relatively stable position near the $35,000 mark, as investors began exploring more adventurous tokens.
In the wake of securing crucial approvals to operate and offer services in both Georgia and Dubai last week, Ripple’s XRP witnessed an impressive surge of nearly 10% throughout the day, surpassing Binance’s BNB to claim the fourth position in terms of market capitalization among cryptocurrencies.
Several other prominent digital assets, including the native tokens of layer 1 networks Cardano (ADA) and Avalanche (AVAX), the beloved meme coin dogecoin (DOGE), the token associated with the oracle network Chainlink (LINK), and the token linked to the decentralized exchange UniSwap (UNI), also experienced significant gains in the range of 5% to 6% over the past 24 hours.
Furthermore, the non-fungible token (NFT) marketplace Blur’s token (BLUR) exhibited remarkable growth, surging by 32% on the day. Notably, its price more than doubled over the course of a month, driven by anticipation surrounding the distribution of 300 million tokens in an upcoming airdrop scheduled for November 20.
On the other hand, Bitcoin remained in a narrow trading range around the $35,000 mark on Monday, while Ether (ETH) also displayed limited price movement.
Bitcoin and Ether Hold Steady Around $35,000 and ETH Remains Stable
The recent outperformance of altcoins, although it has been observed for only a few days, may signal a continued trend of traders shifting their profits from Bitcoin’s approximately 30% October surge into lower-cap digital assets.
Bitcoin’s market dominance, which quantifies the share of the total cryptocurrency market capitalization held by the largest crypto asset, has decreased to 52.5% on Monday, down from about 54.3% in late October. Notably, in late October, it had reached a 30-month high, as reported by TradingView data.
Matteo Greco, a research analyst at Fineqia International, noted that the decline in dominance after five consecutive weeks of increase is an early indication of growing investor interest in altcoins, indicating a more risk-tolerant market sentiment.
Investment advisory firm ByteTree has hinted at the initial stages of a potential “alt season,” an extended period during which the broader altcoin market outperforms Bitcoin’s price. This shift is attributed to the improved market breadth in the crypto rally and the anticipated conclusion of the Federal Reserve’s rate-hiking cycle, creating a more supportive environment for riskier assets.
ByteTree analysts expressed their confidence in this trend by making their most significant investment into altcoins in some time. They added layer 1 protocol NEAR’s token (NEAR), Bitcoin-based smart contract platform Stacks (STX), LINK, and XRP to their model portfolio while reducing their allocation to BTC.
However, according to data from Blockchaincenter, the spread of BTC’s rally to altcoins has not yet achieved the broad scope indicative of a full-fledged altcoin season.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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