Founders of blockchain analytics firm Glassnode believe the crypto market is on the cusp of another full-fledged altcoin rally.
Are We Soon Entering The Season Of Altcoins?
Altcoins are projected to reenter a bullish phase, with the signs becoming clear amid consolidatory Bitcoin price action.
Glassnode founders Jan Happel and Yana Allemann highlighted on their shared X account “Negentropic” that the tech-heavy Nasdaq index dropped 2% on July 11. Contrarily, the iShares Russell 2000 ETF (IWM), an index composed of small-capitalization U.S. equities, gained over 3%. This basically suggests that investors are venturing into riskier assets as they seek to maximize their returns.
The analysts likened the current scenario to November 2020. The small-cap industry started skyrocketing back then and continued extending its gains in the following months.
Happel and Allemann believe a similar setup could happen in the crypto market as investors take some profits from crypto giant Bitcoin and plow them into Ether and other alternative cryptos. In such a scenario, BTC takes a breather as altcoins outperform. “Will we see the same again? Will rotation create a massive rally in Alts? We think that may well happen!” they posited.
Ripple’s XRP Steals The Show
Ripple-linked cryptocurrency XRP has recently outperformed Bitcoin in the wake of the German government’s relentless dumping of its BTC holdings in recent weeks.
For context, the wallets tagged as belonging to the German state of Saxony have liquidated the 49,857 BTC it seized from film piracy website Movie2k in January, amounting to over $3 billion worth of sell-pressure. Moreover, the ongoing repayment of around 140,000 BTC to creditors of the now-defunct crypto exchange Mt. Gox has reduced traders’ appetite for Bitcoin.
The price of BTC briefly surged above $59,000 on Thursday before slumping to $58,630 as of press time after a failed assault on the $60K level. XRP, on the other hand, rallied an eye-watering 10.7% on Saturday following the debut of CME Group’s real-time indices and reference rates for the Ripple-affiliated token.
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