Leading altcoins are once again attempting to pull the crypto market upwards

Leading altcoins are once again attempting to pull the crypto market upwards

Market Overview

The crypto market capitalisation has increased by almost 2% to $3.86 trillion over the past 24 hours due to the traction of major altcoins such as Ethereum (+4%), XRP (+3%), Solana (+7.8%), and Dogecoin (+4.9%). Crypto enthusiasts were expecting a different altcoin season, but it is still worth noting their outperformance relative to the first cryptocurrency.

Bitcoin gained 1% to $111K during the day after spending most of Tuesday forming the basis for a rebound on dips below $110K. This is an important indicator of interest in buying on dips, which probably encouraged more risk-tolerant altcoin buyers. The former is also lagging the stock market, where the S&P500 is on the verge of historic highs, and the Nasdaq100 is 1.8% below its historic high.

News Background

The Bitcoin derivatives market points to pessimistic sentiment, as market participants are actively buying put options.

New investors are selling Bitcoin at a loss. In this way, the market is getting rid of ‘weak hands’ and preparing a support base for future growth, notes analyst Crazzyblockk.

GLJ Research head Gordon Johnson said that BTC is at risk of a 65% collapse due to a reduction in dollar liquidity in the US financial system for the first time since 2022. Only the Fed’s abandonment of quantitative tightening (QT) and a return to new quantitative easing (QE) can remedy the situation.

The altcoin season will not start until new cryptocurrency ETFs are approved, according to Bitfinex. It is only expected to begin at the end of the year. More than 70 applications to launch altcoin-based ETFs are currently under review by the SEC.

Paying interest on stablecoin deposits could cause a massive outflow of deposits from the banking system, Citi warns. A similar situation was observed during the money market fund boom in the United States in the 1980s.

The CRO token, associated with Crypto.com’s Cronos blockchain project, jumped 25% on Tuesday after the announcement of a major partnership with Trump Media. The parties will create Trump Media Group CRO Strategy, a digital asset management company focused on acquiring CRO.

By the FxPro Analyst Team