- Analysts at Coinbase and a crypto VC are expecting an altcoin surge after the inauguration
- Altcoins are gaining in popularity as a result of the increased capital flowing into them and the decline in BTC’s dominance.
Analysts predict that the altcoin market will rally in a big way after Donald Trump’s inauguration. Coinbase analysts have noted the small drop in cryptocurrency prices. Bitcoin’s [BTC] The latest altcoins pump was driven by dominance in the previous week.
Analysts also noted that traders were preparing for a new altcoin era under the Trump administration. Their weekly market commentary read,
“Meanwhile, the drop in BTC dominance from 58.5% to its support level of 57.3% during the inflation print relief rally on January 15 suggests to us that traders may be positioning for an outsized altcoin market rally on the back of positive catalysts for risk assets and crypto.”
Bitcoin dominance retreats
Chris Burniske echoed a very similar sentiment. The former crypto leader at ARK Invest and a Partner of Placeholder, Chris Burniske cited BTC as the dominant cryptocurrency. He said,
“Importantly for the long tail, $BTC dominance has been slowly fading since late November ’24 – fireworks if that continues.”
Source: X
David Duong, a Coinbase analyst and David Han a Coinbase researcher both agree that stablecoin inflows could be another sign of upcoming altcoin price increases.
Capital inflows were strong in this space. A large portion went to altcoins, while BTC and ETH saw outflows.
“Stablecoin supply – perhaps the most clear proxy for capital flows to these long tail assets in our view – increased by $1.3B last week, a continuation of trends we’ve observed over the past two months. This stands in contrast to net outflows from US spot BTC and ETH ETFs of $457M and $206M respectively.”
Despite the bullish outlook, however, another indicator – ETH/BTC – didn’t align with the rest, at least at the time of writing. This ratio measures ETH’s performance relative to BTC. It also shows the rally that occurred during November’s altcoin boom.
TradingView – ETH/BTC
The ratio hit an all-time low at 0.31 as of press time. The altcoin barometer isn’t looking good for this. anticipated altcoin rallyParticularly if November’s trend continues.
Fartcoin, for example, is an altcoin. XRP Weekly winners with almost 100% and 30% gain respectively. Solana [SOL] Hedera also posted gains of 30%, and Hedera gained 22%.
Hedera and XRP also ranked amongst the best altcoin performers of November. They will have to see if they are able sustain this momentum.
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Source: ambcrypto.com
