Trump In, Gensler Out: Altcoins Up
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 136;
After reaching a high of nearly $100K on 22 November, Bitcoin experienced a sharp but brief sell-off, retreating to the $90K level by 26 November, as anticipated. Similarly, BTC's dominance in the crypto market has declined, dropping from 60.1% to 55.5% as of today.
Bitcoin Dominance
Interestingly, ETH has outperformed BTC during this period, as reflected in an uptick in Ethereum’s market dominance. While on-chain activity on Ethereum has not shown significant growth, the price movement suggests that the recent surge is driven more by increased interest from investors rather than heightened activity from on-chain users.
ETH ETF Inflows
Investor interest in Ethereum has been further confirmed by record-breaking ETH ETF inflows, reaching $332.9m on 29 November. Leading the charge was BlackRock’s ETHA, which accounted for over $250m in single-day inflows.
Meanwhile, XRP, another major altcoin, has delivered an impressive performance in recent weeks. Since hitting its November low, the token has surged by over 370%, earning a top-tier 5-star ByteTrend score against BTC.
XRP in BTC
Ripple, the company behind XRP, has seen its token outperform BTC and the broader market, thanks to its recent legal victory against the SEC, coupled with the favourable shift in the US regulatory environment and the resignation of the SEC Chair Gary Gensler. Additionally, according to a Fox Business report, Ripple is on the verge of securing regulatory approval for its stablecoin, RLUSD. These developments have propelled XRP to new highs.
Notably, Stellar (XLM), an alternative token founded by a Ripple cofounder, has also experienced a similar rally.
Meanwhile, speculation on Twitter suggested that former President Trump might eliminate capital gains taxes for all US-based crypto tokens. Although this claim seems unlikely and has minimal chances of becoming reality, U.S.-based tokens like Hedera Hashgraph (HBAR), Render Network (RNDR), and Cardano (ADA), alongside XRP and XLM, have been performing exceptionally well in recent weeks.
The ByteTree Crypto Average, earning a 5-star ByteTrend score, indicates a robust overall market. With CoinMarketCap's (CMC) Altcoin Season Index signalling that we're on the cusp of entering an alt season, the outlook appears promising.
CMC Altcoin Season Index
As altcoins make a comeback, ByteFolio plans to add new altcoins to its portfolio in the coming weeks, capitalising on the positive market momentum.
ByteFolio Performance in USD
