Analysis: Crypto Market Momentum Shifts with Altcoin Rotation
The crypto market is experiencing a significant momentum shift, with altcoins leading the rally. The rotation to altcoins has started, driven by the anticipation of friendlier crypto regulatory policy under Donald Trump’s presidency. Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), is set to leave on January 20, President-elect Donald Trump’s inauguration date, which is expected to bring about a regulatory sea-change towards digital assets.
Key Points:
- Altcoin Rotation: Altcoins are taking their moment to shine, with XRP leading the rally, gaining 33% in 24 hours, and Cardano’s ADA rising over 15%. Solana’s native token (SOL) hit an all-time high above $260, the first of the large-cap altcoins to surpass the 2021 market peaks.
- Regulatory Environment: The anticipation of friendlier crypto regulatory policy under Donald Trump’s presidency is driving the rotation to altcoins. Gary Gensler’s departure from the SEC is expected to bring about a regulatory sea-change towards digital assets.
- DEX Trading Volumes: Traders are increasingly flocking to decentralized exchanges (DEXs) in anticipation of friendlier crypto regulatory policy. Volumes on major DEXs surged to a record $72.6 billion last week, with Solana-based Raydium alone accounting for a staggering 44% of the total.
- Institutional Interest: Financial service giant Charles Schwab wants to directly offer crypto to users, a sign that U.S. institutions are increasingly emboldened by an expected regulatory sea-change towards digital assets.
- Altcoin Performance: The CoinDesk 20 Index gained over 7%, with most alternative cryptocurrencies (altcoins) in the CD20 outperforming BTC.
Predictions:
- Altcoin Rally to Continue: The rotation to altcoins is expected to continue, driven by the anticipation of friendlier crypto regulatory policy under Donald Trump’s presidency.
- BTC Price to Stabilize: The BTC price is expected to stabilize around the $100,000 mark, with the possibility of rallying to $115,000 by Christmas, supported by broadening stablecoin supply, inflows into ETFs, and bullish options positioning on BlackRock’s spot BTC ETF (IBIT).
- DEX Trading Volumes to Increase: DEX trading volumes are expected to increase, driven by the growing popularity of DEXs and the anticipation of friendlier crypto regulatory policy.
- Institutional Interest to Grow: Institutional interest in crypto is expected to grow, driven by the expected regulatory sea-change towards digital assets and the increasing popularity of DEXs.
Key Takeaways:
- The crypto market is experiencing a significant momentum shift, with altcoins leading the rally.
- The rotation to altcoins is driven by the anticipation of friendlier crypto regulatory policy under Donald Trump’s presidency.
- DEX trading volumes are surging, driven by the growing popularity of DEXs and the anticipation of friendlier crypto regulatory policy.
- Institutional interest in crypto is expected to grow, driven by the expected regulatory sea-change towards digital assets and the increasing popularity of DEXs.
Conclusion:
The crypto market is undergoing a significant momentum shift, with altcoins leading the rally. The rotation to altcoins is driven by the anticipation of friendlier crypto regulatory policy under Donald Trump’s presidency. DEX trading volumes are surging, and institutional interest in crypto is expected to grow. As the market continues to evolve, it is essential to stay informed and adapt to changing market conditions.
