Altcoins are expected to continue their rally as Bitcoin (BTC) and Ethereum (ETH) remain the focus of traders, according to a prominent market intelligence platform. Santiment, a crypto analytics firm, highlights nine altcoins including Polygon (MATIC), Decentraland (MANA), Fantom (FTM), and Pepe (PEPE) that are experiencing increases in new wallet addresses and prices.
Santiment points out that both BTC and altcoins are moving away from their reliance on equities markets, which could indicate the onset of a bull market. The firm notes that Bitcoin recently reached a new 17-month high and the crypto market cap is growing while the S&P500 declines. This departure from the traditional correlation between cryptocurrencies and equities is typically seen in bull market conditions.
Furthermore, Santiment emphasizes the positive impact of the upcoming release of spot market Bitcoin exchange-traded funds (ETFs) on the momentum of the crypto markets. The firm highlights the relisting of Blackrock’s iShares on the Depository Trust and Clearing Corporation (DTCC) as a significant boost for Bitcoin and other crypto prices.
Shifting the focus to Ethereum, Santiment reveals that the leading altcoin has performed well during the recent crypto surge. Whale transactions centered around ETH have reached a six-month high, indicating increased activity and interest from large investors. Additionally, Ethereum’s supply on crypto exchanges is at its lowest since 2015, suggesting a potential decrease in selling pressure.
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As Bitcoin and Ethereum continue to dominate the crypto spotlight, altcoins like MATIC, MANA, FTM, and PEPE are poised to benefit from the ongoing trader focus. These altcoins are experiencing growth in new wallets created, indicating rising interest and adoption.
The decoupling of BTC and altcoins from equities markets is a promising sign for the crypto industry. Historically, cryptocurrencies have been heavily influenced by traditional financial markets. However, as the correlation weakens, it suggests a growing recognition of cryptocurrencies as independent assets with their own value drivers.
The release of spot market Bitcoin ETFs is expected to have a significant impact on the crypto market. The prospect of increased exposure and accessibility through ETFs attracts new investors and fuels optimism among existing market participants. This optimistic sentiment is contributing to the ongoing growth of Bitcoin and altcoin prices.
In the case of Ethereum, the positive performance during the recent surge reflects its fundamental strength and growing popularity. Whale transactions, which involve large amounts of ETH, indicate strong interest and confidence from high-net-worth individuals. The decreasing supply of Ethereum on exchanges suggests a shift towards long-term holding or use in decentralized applications.
Overall, the current market dynamics indicate a promising future for altcoins alongside Bitcoin and Ethereum. The ongoing rally in altcoins like MATIC, MANA, FTM, and PEPE, coupled with the decoupling from equities and the anticipation of Bitcoin ETFs, creates a favorable environment for continued price growth in the crypto market. Traders and investors should keep a close eye on these emerging trends and the potential opportunities they present.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Cryptocurrency investments are subject to market risks, and individuals should conduct their own research before making any investment decisions.
