AI Summary
- Bitcoin at $100k is a major milestone not just for Bitcoin, but for the whole cryptocurrency market. With a new crypto-friendly U.S. administration on the way, things are going to get exciting.
- Bitcoin dominance is gaining against alts and some altcoins have either stayed put or fallen in price as Bitcoin swallows the market’s liquidity. With Bitcoin at a new all-time high of over $100k, what does this mean for the rest of the crypto market and how can you take advantage of it.
- During Bitcoin’s jump to $100k, Ethereum surged 5.4% to $3,900.
- With Bitcoin’s dominance over 55%, liquidity for most altcoins has been taken up by Bitcoin.
Bitcoin at $100k is a major milestone not just for Bitcoin, but for the whole cryptocurrency market. With a new crypto-friendly U.S. administration on the way, things are going to get exciting.
Bitcoin dominance is gaining against alts and some altcoins have either stayed put or fallen in price as Bitcoin swallows the market’s liquidity.
With Bitcoin at a new all-time high of over $100k, what does this mean for the rest of the crypto market and how can you take advantage of it?
Altcoins and Bitcoin: What comes next for alts?
It’s becoming a running joke in the crypto community and on Twitter that Ethereum, despite its technological advancements, has consistently lagged behind Bitcoin. During Bitcoin’s jump to $100k, Ethereum surged 5.4% to $3,900.
XRP on the other hand has surged with Hedera (HBAR), Stellar (XLM), Cardano (ADA), and Chainlink (LINK), riding the tail of Bitcoin and have surged over 20%+ this week.
The same can be said for Solana, despite pausing and slightly falling this week, has gained and made a steady surge for the past few months alongside various top meme coins such as DOGE and PEPE.
With Bitcoin’s dominance over 55%, liquidity for most altcoins has been taken up by Bitcoin. Until BTC settles and its dominance decreases, it may be harder for some altcoins to pass their previous all-time highs.
Bitcoin dominance: When will it go down?
According to analysts, Bitcoin dominance tends to take a step back after halving, or, once sentiment changes after Bitcoin has reached a pivotal moment.
The last Bitcoin halving event was April 20, 2024, since then, Bitcoin has pushed quickly from $64k to where it currently sits in a range of $97k – $101k. Typically, after a Bitcoin halving event, Bitcoin will rally hard.
Another reason for Bitcoin’s dominance surge and price gains is new institutional interest in the token such as El Salvador using Bitcoin as a reserve currency and MicroStrategy hoarding over $31 billion worth of Bitcoin.
Altcoins to watch when BTC dominance falls
Almost all altcoins will perform well once BTC dominance drops, but some altcoins will outperform the rest.
In recent weeks there has been a priority on “dino” coins such as XRP, HBAR, ALGO, Cardano’s ADA, and Stellar Lumens due to a new crypto-friendly Trump administration.
A crypto-friendly U.S will enable dino coins which are mostly interested in institutional bridges to outperform projects that do not have goals in the traditional financial world.
Altcoins in the top 20 based on market cap tend to gain first, followed by smaller altcoins. An exception to this rule would be meme coins that tend to be traded more emotionally and at a quicker pace leading to bursts of high gains followed by hard downturns.
As investors, it’s best to position accordingly and do research on tokens that may be worthwhile in adding to a portfolio whenever Bitcoin takes a rest.
